TOLEDO, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) today announced that the company and its subsidiary,
Dana Canada Corporation, have completed the sale of their trailer axle
manufacturing assets to Hendrickson USA, L.L.C., a subsidiary of The Boler
Company, and its affiliates.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
The U.S. and Canadian assets, which include trailer axle production
equipment, inventory, and related assets at facilities in Lugoff, S.C.,
USA, and Barrie, Ontario, Canada, were sold for a combined U.S. $31
million, subject to inventory adjustments at closing.
Additionally, a Chinese affiliate of Hendrickson has established a U.S.
$2 million escrow for the purchase of certain trailer axle production
equipment, inventory and related assets from Dana's Chinese subsidiary Dana
(Wuxi) Technology Co. Ltd. Dana expects that the sale of the Wuxi assets
will close in the first quarter of 2007.
Dana Heavy Vehicle Products President Nick Stanage said, "The sale of
the trailer axle assets enables Dana's Commercial Vehicle group to
concentrate its resources on its core products and competencies - drive and
steer axles, driveshafts, brakes and tire inflation systems for commercial
vehicles."
In conjunction with these transactions, Bendix Spicer Commercial
Vehicle Foundation Brake LLC, a joint venture in which Dana has an
interest, has entered into an agreement to supply certain of Hendrickson's
requirements for Bendix(R) brake products and systems through 2013.
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and
engine technologies. Dana people design and manufacture products for every
major vehicle and engine producer in the world. Based in Toledo, Ohio, with
operations throughout the world, Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The company's
continuing operations reported sales of $8.6 billion in 2005. Dana's
Internet address is: http://www.dana.com/.
Dana and certain of its U.S. subsidiaries are operating under Chapter
11 of the U.S. Bankruptcy Code as debtors in possession. Information about
the bankruptcy proceedings can be found at:
http://www.dana.com/reorganization. While Dana continues its reorganization
under Chapter 11, investments in its securities are highly speculative.
Although shares of Dana common stock continue to trade on the OTC Bulletin
Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares
may have little or no relationship to the actual recovery, if any, by the
holders under any eventual court-approved reorganization plan. The
opportunity for any recovery by holders of Dana common stock under such
reorganization plan is uncertain and shares of Dana common stock may be
cancelled without any compensation pursuant to such plan.
Forward-Looking Statements
Statements in this release regarding the closing of the asset sale by
Dana (Wuxi) Technology Co. Ltd. constitute "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements represent Dana's expectations based on its current
information and assumptions, but there can be no assurance that the sale of
these assets will close as contemplated. Dana does not undertake to update
any forward-looking statements in this release.
Contact:
Chuck Hartlage
(419) 535-4728
chuck.hartlage@dana.com
SOURCE Dana Corporation
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Related links:
http://www.dana.com
Photo Notes:Newscom:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/226839.html/
CONTACT:
Chuck Hartlage of Dana, +1-419-535-4728, or
chuck.hartlage@dana.com
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