SHANGHAI, China, March 19 /PRNewswire-FirstCall/ -- Dana Corporation
(OTC Bulletin Board: DCNAQ) announced today that its subsidiary, Dana
Mauritius Ltd., and Dongfeng Motor Co. Ltd. have amended the agreement to
develop their 50/50 joint venture, Dongfeng Dana Axle Co. Ltd. Certain
terms of the original agreement with Dongfeng signed on March 10, 2005,
were renegotiated after Dana filed for reorganization under Chapter 11 of
the United States Bankruptcy Code in March 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Under the amendments and other agreements signed by both companies -
and subject to certain government approvals, Dana Mauritius will make an
initial payment of 38.8 million RMB (approximately USD 5 million) to
Dongfeng for a 4-percent equity interest in the joint venture. Closing of
this part of the transaction is expected to be completed by the end of
March 2007. Dana Mauritius will purchase the remaining 46-percent equity
interest after April 1, 2008, and within three years of receiving the
aforementioned government approvals.
Dana Mauritius will invest in an existing Dongfeng subsidiary, which is
China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana
Axle. Headquartered in Xiangfan, China, the joint-venture company will
employ approximately 8,000 employees in three production facilities in
Xiangfan and Shiyan, as well as a research and development center that will
be established. The technical center will support Dongfeng Dana Axle's
commitment to providing its customers with world-class manufacturing
processes and axle components and systems.
"We are very pleased to reach this milestone with Dongfeng," said Nick
Stanage, president of Dana's Heavy Vehicle Products group. "Dongfeng Dana
Axle will be the largest commercial vehicle axle supplier in Asia. For
Dana's Commercial Vehicle Systems business, this joint venture also
provides a great opportunity to balance and complement our extensive
operations in North America."
Another term of the joint venture agreement between Dana and Dongfeng
is Dana licensing certain commercial vehicle axle technology to Dongfeng
Dana Axle for the term of the joint venture.
Dana has seven other joint ventures in the Asia-Pacific region,
including two in China. With more than 4,300 employees in 18 facilities in
the region, Dana produces axles, propshafts, structures, and sealing and
thermal- management products for a host of light- and heavy-vehicle
manufacturers.
About Dongfeng Motor Co. Ltd.
Dongfeng Motor Co. Ltd. is a joint venture between the state-owned
Dongfeng Motor Group Company Ltd. and a Chinese subsidiary of Nissan
Motors. Dongfeng Motor Group was founded in 1969 and with its affiliates
ranks as one of the three largest vehicle makers in China. Dongfeng Motor
Co. Limited produces a broad range of light-, medium-, and heavy-duty
trucks, as well as buses and passenger cars.
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 Dana's investment in its joint
venture with Dongfeng Motor 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. Forward-looking statements are
inherently subject to risks and uncertainties. Actual results could differ
from those that are anticipated and there can be no assurance that this
sale will be completed as contemplated. Dana does not undertake to update
any forward- looking statements in this release.
SOURCE Dana Corporation
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Related links:
http://www.dana.com
http://www.dana.com/reorganization
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 Corporation,
+1-419-535-4728, chuck.hartlage@dana.com
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