TOLEDO, Ohio, July 7 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) announced today that it and Desc S.A. de C.V. have
completed the dissolution of their Mexican joint venture. The closing of
this transaction provides Dana with full ownership of several core
operations based in Mexico, which will operate under Dana Holdings Mexico,
S. de R.L. de C.V., a new Dana subsidiary.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)
Dana and Desc dissolved their joint venture, Spicer S.A. de C.V., with
Dana assuming 100-percent ownership of operations that manufacture and
assemble axles, driveshafts, gears, forgings, and castings in which Dana
previously held an indirect 49-percent interest. Desc, in turn, has assumed
full ownership of the transmission and aftermarket gasket operations in
which it previously held a 51-percent interest. Along with exchanging its
minority interest in the joint venture, Dana also made a cash payment of
$19.5 million (USD) to Desc.
"Taking full ownership of these core operations further solidifies our
competitive profile," said Dana Chairman and CEO Mike Burns. "In
particular, Dana expects to benefit from the addition of technologically
advanced operations supporting our core axle and driveshaft businesses, as
well as the manufacturing cost efficiencies that come with expanding our
global presence in this key competitive location."
With the completed transaction, Dana has acquired full ownership of
five manufacturing operations, which had combined sales -- both to Dana and
to third parties -- of $296 million (USD) in 2005.
The facilities, Autometales, S.A. de C.V.; and Ejes Tractivos, S.A. de
C.V. in Mexico City, and Cardanes, S.A. de C.V.; Engranes Conicos, S.A. de
C.V.; and Forjas Spicer, S.A. de C.V. in Queretaro, produce light vehicle
axle and driveshafts and a variety of related components.
As part of the transaction, Desc has assumed full ownership of
Transmisiones y Equipos Mecanicos, S.A. de C.V. (Tremec) and Transmisiones
TSP, S.A. de C.V. (TSP) transmissions, located in Queretaro, Mexico;
Transmission Technologies Corporation (TTC) with operations in Knoxville,
Tenn.; and the T.F. Victor, S.A. de C.V. aftermarket gasket operation in
Mexico City, Mexico. Dana will sell aftermarket gaskets in Mexico through
T.F. Victor and original equipment gaskets directly to engine and vehicle
manufacturers.
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and
engine technologies. Our people design and manufacture products for every
major vehicle and engine producer in the world. Based in Toledo, Ohio, with
operations throughout the world, we are focused on being an essential
partner to automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. Our continuing
operations reported sales of $8.6 billion in 2005. Dana's Internet address
is: http://www.dana.com/.
Dana and certain of our 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 we continue our reorganization
under Chapter 11, investments in our securities will be highly speculative.
Although shares of our common stock continue to trade on the Over the
Counter 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 our common stock under such
reorganization plan is uncertain and shares of our common stock may be
cancelled without any compensation pursuant to such plan.
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:
Todd M. Romain of Dana Corporation,
+1-419-535-4727, or todd.romain@dana.com
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