Dana Joint Venture to Supply Suspension Modules and Front Axles to Volkswagen of Brazil
Aug 8, 1996
TOLEDO, Ohio, Aug. 8 /PRNewswire/ -- 1996 Dana Corporation's Brazilian
subsidiary and Brazilian brake manufacturer Freios Varga S.A. will form a new
jointly owned company in Brazil to supply front suspension modules and rear
axles for the Volkswagen Golf, according to Cedomir Eterovic, president of
Dana-South America.
At full production, estimated sales for the new company, Sistemas
Modulares Ltda.(SM), will be $160 million per year, including components made
by the owners of the joint venture and their affiliates.
The new operation will be situated in the vicinity of the Volkswagen
Taubate plant, where the Brazilian version of the Golf is assembled at a rate
of 1,200 vehicles per day, Eterovic said. Assembly of the suspension modules
and axles is expected to begin in September of this year. Full integration of
these operations will be completed in 1997.
"Our Brazilian affiliate, ATH, received a '1996 Value to the Customer
Award' from Volkswagen, and Dana is also a supplier to VW in Europe," Eterovic
said. "Those clearly were factors in Volkswagen's decision to source these
systems with Dana. As our customers expand their worldwide operations, they
look to suppliers like Dana to grow with them."
Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets. Founded in 1904 and based in Toledo, Ohio, Dana operates
facilities in 29 countries with 45,000 people. Its 1995 sales were
$7.6 billion. Named in 1995 by Financial World magazine as one of the "Best
100 Growth Companies," Dana is noted for its style of management and its
commitment to innovation. It has more than 37 product research and
development centers worldwide. Dana also owns Dana Credit Corporation, a
leading provider of lease financing services. The internet address for Dana's
home page is http://www.dana.com.
SOURCE Dana Corporation