Dana in joint venture to produce axles in China

Dana Corporation announced today that it has signed a formal letter of intent to form a 50/50 joint-venture company with one of China's largest commercial-vehicle axle manufacturers, Dongfeng Motor Co., Ltd. The planned joint venture will manufacture and assemble commercial-vehicle axles and components in China. In addition, it will have a research and technical center for manufacturing, materials, and systems development for medium- and heavy-duty axle products. Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group, said, "When this joint venture is completed, we will have established the largest commercial-vehicle axle and component manufacturing company in China. With our technology and commercial-axle expertise, the joint-venture company will become a world-class, globally competitive supplier of medium and heavy axles for both Dongfeng Motor Co., Ltd., and Dana. "In addition, the new company will serve as a key component-manufacturing base for Dana's global heavy-vehicle assembly operations, enabling us to provide the highest-quality, most cost-competitive components and systems anywhere in the world." Ouyang Jie, president of the Components Group of Dongfeng Motor Co., Ltd., said, "We strongly support this strategic venture knowing that both companies will gain the critical mass in scale and technology in Asia to support our customer base. We believe this is an excellent opportunity not only for Dong Feng and Dana, but also for China." Completion of the joint venture is subject to board approval by both companies, customary governmental approvals, and execution of a definitive agreement. Dongfeng Motor Co., Ltd., of Xiangfan, China, is one of the largest commercial-vehicle manufacturers in China, producing a broad range of medium- and heavy-duty trucks and buses.