Dana Corporation Announces Organizational Changes, Appoints Technology Officer, and Provides Additional Details on Restructuring Plans

Dec 3, 2001

    TOLEDO, Ohio, Dec. 3 /PRNewswire/ -- At an analyst conference on Friday,
Nov. 30, Dana Corporation (NYSE: DCN) Chairman and CEO Joe Magliochetti and
Chief Financial Officer Bob Richter announced organizational changes and the
appointment of a technology officer.  They also provided further information
regarding the company's previously announced restructuring plans.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )

    Organizational Changes Target Improved Efficiency
    In conjunction with its efforts to serve customers more efficiently, Dana
announced the following organizational changes:

    * Consolidation of the company's Engine Systems and Fluid Systems business
      units into the newly created Engine and Fluid Management Group.  The
      group will be led by Mike Laisure, who most recently headed Dana's Fluid
      Systems Group.
    * Integration of the axle manufacturing operations of its Off-Highway
      Systems Group with those of its Commercial Vehicle Systems unit.

    "Over the past several months, we have talked about streamlining our
organization to focus more sharply on our foundation businesses," said Mr.
Magliochetti.  "The creation of the Engine and Fluid Management Group and the
recently announced plans to divest the businesses of our Dana Commercial
Credit leasing services operation are significant steps in that direction,
effectively condensing our structure from seven business units to five."
    The new Engine and Fluid Management Group encompasses more than 130
operations in 15 countries with combined annual sales of approximately $2.3
billion.  The group will provide strategic components and systems to enhance
fuel economy and power generation.
    "There are a number of new and exciting powertrain innovations being
considered within our industry including fuel cells and other hybrid
configurations," Mr. Magliochetti said.  "This new structure will better
enable Dana to fully capitalize on these opportunities."
    To further leverage its engineering and manufacturing capabilities, Dana
will also integrate its off-highway axle component manufacturing operations
into its Commercial Vehicle Systems unit, reporting to group president Rick
Clayton.  The company's off-highway sales, marketing, assembly, systems
engineering and transmission manufacturing functions will continue to report
to Off-Highway Systems President Nick Cole.
    "In the current competitive environment, it is more essential than ever
before that we optimize our global capabilities and provide even greater value
for our customers," Mr. Magliochetti said.  "This new structure will enable
the Off-Highway Systems Group to continue its comprehensive market focus,
while we accelerate our axle manufacturing efficiencies."

    Technology Officer Appointed
    The company also announced the appointment of Chuck Heine to the newly
created position of President of Technology Development and Diversified
Products.  In this role, Mr. Heine, who has held numerous positions with Dana
both in North America and Asia, essentially becomes Dana's chief technology
officer.  This appointment underscores Dana's commitment to new product growth
through innovation and technology.
    Reporting directly to the chairman, Mr. Heine has responsibility for
Dana's Technical Resource Park; the Dana Motors and Controls Division;
American Electronic Components; Automotive Motion Technology, Ltd.; and
certain emerging technologies.  He holds a bachelor of science degree in
Mechanical Engineering from Purdue University, a master of science degree in
Engineering from the University of Texas, and a master's degree in Business
Administration from Indiana University.
    "Chuck will play a key role in our pursuit of broader applications of our
intellectual properties, as well as securing longer-term opportunities with
our key customers and other technical constituencies," Mr. Magliochetti said.

    Restructuring Efforts Progressing
    In addition to the organizational changes, Dana also updated its estimates
of the charges related to its restructuring plans announced on Oct. 17:
    * Total restructuring costs are expected to be approximately $445 million
      after tax.
    * Approximately 35 percent of these costs will be non-cash.   Most of the
      cash portion will be severance costs related to the previously announced
      workforce reduction of more than 15 percent.
    * About 65 percent of the charges will be incurred in the current quarter,
      with the balance expected to be incurred in 2002.
    * Approximately 75 percent of the charges will be directly related to
      North American operations.
    * About 55 percent of the restructuring charges will be incurred by the
      business units primarily serving the light vehicular OE marketplace, and
      26 percent will be incurred by the Automotive Aftermarket Group.

    "This is the most extensive restructuring that Dana has ever undertaken
and will include the closure or consolidation of more than 30 facilities
worldwide," Mr. Richter said.  "While prompted by the extraordinary
environment in which we find ourselves, it is supported by the belief that we
will emerge a stronger, more competitive Dana, better positioned for the

    Dana Corporation Overview
    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 75,000
people.  The company reported sales of $12.3 billion in 2000.  Dana's Internet
address is http://www.dana.com .

    Forward-Looking Statements
    Certain statements contained herein (including our forecasts, beliefs, and
expectations) constitute "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  These statements
involve assumptions, uncertainties, and risks, and Dana's actual future
results, performance, or achievements may differ materially from those
expressed or implied in these statements.  Among the factors that could affect
Dana's actual results are the impact of national and international economic
conditions (including additional adverse effects from terrorism or
hostilities) on production and sales by the company's vehicular customers; the
company's ability to complete the sale of DCC's businesses as contemplated;
and the success and timing of the company's restructuring, cost reduction and
cash management programs.  Additional factors are detailed in Dana's public
filings with the Securities and Exchange Commission.  Dana does not undertake
to update any forward-looking statements contained herein.

SOURCE Dana Corporation

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

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