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
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