Dana and GKN Complete Strategic Alliance for Advanced Driveline Systems and Modular Assemblies

Feb 1, 2000

                 Companies to Share Innovative Technologies;
              Provide Customers with Advanced Driveline Systems

    TOLEDO, Ohio, Feb. 1 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today the completion of previously announced transactions with GKN
plc regarding the establishment of a joint venture to develop advanced
driveline systems and modular assemblies for all-wheel and four-wheel drive
passenger cars, light trucks, and sport utility vehicles.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Dana and GKN also signed final agreements to exchange certain assets that
will allow each company to focus on its respective core automotive driveline
businesses.  GKN is a global leader in constant velocity (CV) joint driveshaft
technology, and Dana is an established global leader in cardan-jointed
propeller shafts.  Under the agreements, Dana will exchange its CV joint
business for GKN's cardan-jointed propeller shaft business.
    "This joint venture demonstrates Dana's commitment to focus and strengthen
our core businesses," said Bill Carroll, president of Dana's Automotive
Systems Group.  "An environment now exists where two global leaders in the
automotive industry will contribute their innovative technology, in turn
providing customers with leading edge, advanced driveline systems and
modules."   Carroll added that Dana and GKN have established an office in
Auburn Hills, Mich., to provide engineers from both companies an integrated
work environment.
    These transactions are consistent with Dana's previously announced Five-
Point Plan for the continued growth and increased profitability of the
company.  Dana's Five-Point Plan, which is a tactical link to the company's
overall strategic plan, includes the following five tactics:

   *  Grow while focusing on returns and maintaining financial discipline;
   *  Seek strategic, bolt-on acquisitions at reasonable valuations;
   *  Divest non-strategic and non-performing operations;
   *  Repurchase stock as the company generates cash; and
   *  Complete integration efforts and realize synergy savings.

    GKN is a global industrial company with sales exceeding approximately
$6 billion (3.7 billion pounds).  Its activities are focused on the
automotive, aerospace and industrial services sectors and it has leadership
positions in all of its major products and services.  GKN employs 39,380
people in its subsidiaries and 19,790 in joint ventures and associates.  GKN's
Internet address is http://www.gknplc.com .
    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and their related aftermarkets.  Founded in 1904, and
based in Toledo, Ohio, the company operates some 330 major facilities in
35 countries and employs more than 84,000 people.  The company reported sales
of $13.2 billion in 1999.  Dana's Internet address is http://www.dana.com .

SOURCE Dana Corporation

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

Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html or fax, 800-758-5804,
ext. 226839

print Print   email Email      rss RSS