Dana Corporation Integrates Light Axle, Driveshaft Businesses as Part of Customer-Focused Realignment

      $3 Billion Torque and Traction Technologies Group to Locate in New
         State-of-the-Art Automotive Systems Group Technology Center

    TOLEDO, Ohio, April 19 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced several actions related to the realignment of its
Automotive Systems Group.  The moves are geared to maximize the collective
strengths of Dana's Automotive Systems resources to benefit its global
customers.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    The company announced that it will integrate its global traction
technologies and torque management businesses in an effort to streamline and
maximize the combined benefits of these units.  The businesses will form the
new Dana Torque and Traction Technologies Group, which had combined 2001 sales
of approximately $3 billion.
    In conjunction with this effort, the operations will integrate their
divisional headquarters and global engineering, research, and development
centers in a new state-of-the-art Automotive Systems Group Technology Center
to be located in the Northwest Ohio/Southeast Michigan region.  Construction
of the new facility -- which will also house and integrate a broad range of
Automotive Systems Group disciplines -- will begin this summer and is expected
to conclude by the end of 2003.
    Dana Chairman and CEO Joe Magliochetti said the moves support several key
strategies.  "The integration of these businesses will enable our light axle
and driveshaft operations to recognize a number of operational synergies," he
said.  "At the same time, the move will enhance technology sharing, improve
our capacity to respond quickly and effectively to marketplace demands, and
expand our ability to provide advanced driveline systems and modules to our
global customers."
    Added Bill Carroll, president of Dana's Automotive Systems Group, "By
combining the talents and resources resident in these operations, we expect to
achieve benefits that are even greater than the sum of these parts.  The
integration of our world-class axle operations and our Baldrige-award-winning
driveshaft group is geared to better serving our customers through enhanced
speed and alignment.  In doing so, we will strengthen our competitive position
for the future."
    The new Automotive Systems Group Technology Center will be home to Dana's
World Center of Axle Technology and several related operations currently
located in Fort Wayne, Ind., as well as the company's World Center of
Driveshaft Technology, now located in Holland, Ohio.  The facility will also
accommodate a variety of Automotive Systems Group resources, including
significant engineering, sales and marketing, and information technology
operations.
    The relocation of Dana's light axle people will be a two-stage process
consisting of an initial move of 150 people into a temporary facility this
year and a second relocation phase upon completion of the new facility in
2003.  The moves will ultimately result in the addition of approximately 300
jobs to the Northwest Ohio/Southeast Michigan region, and the retention of
approximately 200 jobs associated with Dana's driveshaft operations in
Holland.
    The new facility will consist of 90,000 square-feet of design and
development space, and an additional 80,000 square-feet for offices and
potential future expansion.

    The new facility will feature:
    * An advanced prototype and manufacturing/assembly area;
    * Three-dimensional computer modeling and testing capabilities;
    * Real-time video and network resources providing direct linkage to
      manufacturing facilities and customers; and
    * A focused customer systems integration approach.

    Mr. Carroll said the actions represent a significant move toward achieving
Dana's Automotive Systems vision.  "The integration of these groups and
development of an advanced engineering and technology hub is a major step in
our continuing evolution from a provider of components to a provider of
integrated systems," he said.  "We are maximizing the potential of our world-
class facilities and technical capabilities to support the growing needs of
our global customers."
    Together, Dana's Torque and Traction Technologies Group consists of more
than 65 facilities on six continents.  The group is a leading global
manufacturer of complete driveline systems and modules for the vehicular, off-
highway, and industrial markets.   It also encompasses a wide variety of
traction-oriented solutions -- from individual axle components to the gearless
technologies of tomorrow.
    Dana Corporation is one of the world's largest suppliers of components,
modules and complete systems to global vehicle manufacturers and their related
aftermarkets.  Founded in 1904 and based in Toledo, Ohio, the company operates
some 300 major facilities in 34 countries and employs approximately 70,000
people.  The company reported sales of $10.3 billion in 2001.  Dana's Internet
address is http://www.dana.com .

SOURCE Dana Corporation

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

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