Dana Corporation to Supply Independent Rear Suspension Systems for Ford Falcon in Australia

          Company Also to Provide Supply-Chain, Inventory Management

    TOLEDO, Ohio, May 20 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) announced today that it will be supplying independent rear
suspension systems -- in sequence and just-in-time -- for the Ford Falcon,
which will begin production later this year.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Dana will supply the systems from its facility in the newly developed
National Business Park, only minutes from Ford Australia's Campbellfield
vehicle assembly plant.
    "This program really adds to Dana's growing expertise in systems
integration," said Bill Carroll, president of Dana's Automotive Systems Group.
"We were awarded this business based on our overall capabilities, as well as
our success with other systems integration projects.  We have significant
design responsibility for these systems, and we have been able to integrate
Dana's structural, suspension, traction, and torque management technologies
into one complete system."
    Through the co-location of Dana engineers in Ford's product development
facilities, Dana and Ford were able to collaborate on the design and
development of the independent rear suspension system.
    The collaboration will achieve significant cost savings due largely to
improvements in design and process efficiencies, such as faster response times
to customer issues and a shorter lead-time from the design to the
manufacturing stage.  In addition, logistical benefits will result from the
proximity of the Dana and Ford facilities.  Ultimately, these efficiencies
will offer consumers a higher-quality, lower-cost vehicle.
    "By being involved in the early stages of the design and development of
this system, we were able to capture potential synergies and identify and
address issues earlier in the product development process," said Steve Hanley,
vice president of Dana's Systems Integration Group.  "This is an excellent
example of a true collaboration between an OEM and a Tier I supplier.  In
fact, by working together, we have successfully eliminated one prototype build
for Ford and cut design and development time by some 50 percent in comparison
to typical practices just 10 years ago."
    Dana is also providing Ford with complete Tier II supply-chain and
inventory management.  The finished system consists of 78 components from 27
suppliers.
    A Dana-developed, unique and portable LeanERP(TM) system is used to ensure
that the 25 possible variations of the system are built to the correct
sequences.  The moment a new Falcon starts down the assembly line, the Dana
facility receives an electronic message containing the model specification and
type of suspension module required for that vehicle.  After assembly, the
finished module is scanned to provide full traceability and loaded in sequence
to be shipped to Ford.  Deliveries are made every 24 minutes and there is a
2 and 1/2-hour window from the time the original broadcast comes from the
customer until the final system is assembled in the vehicle.

    Dana's Automotive Systems Group is a leading provider of under-the-vehicle
integration technology for automotive manufacturers worldwide.  The group
offers advanced driveline design, drivetrain torque and traction technologies,
chassis design solutions, advanced modularity concepts, complete integrated
systems engineering, and program and logistics management.  Drawing upon a
century of vehicular expertise, its products include Dana Spicer(R) axles,
drivelines, and structural products; GETRAG(R) differentials, PTUs, and
transaxles; Tremec(R) transmissions; Nakata(R) steering and suspension
systems; and FTE(R) brake and clutch actuation systems.  The group focus is
environmentally friendly innovations to improve overall vehicle handling
performance and comfort.
    Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicle manufacturers and their related aftermarkets.  The
company employs approximately 70,000 people worldwide -- all dedicated to
achieving innovation through close collaboration with customers.  Founded in
1904 and based in Toledo, Ohio, Dana operates hundreds of technology,
manufacturing, and customer service facilities in 34 countries.  The company
reported sales of $10.3 billion in 2001.

SOURCE Dana Corporation

Web Site: http://www.dana.com

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