Dana Corporation 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.?
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 yuan
(approximately US$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.
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.
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 US$8.6 billion in 2005.
Dana and certain of its US subsidiaries are operating under
Chapter 11 of the US 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.?
(China.org.cn March 20, 2007)