Toledo, Ohio - Dana Corporation announced that it has
signed a definitive agreement to purchase an interest in GETRAG Getriebe- und
Zahnradfabrik Hermann Hagenmeyer GmbH & Cie, a manufacturer of transmissions,
transaxles, axles, and other automotive components. Headquartered in Ludwigsburg, Germany,
the company had sales of $750 million in 1999. Financial terms of the agreement were not
relationship will support our global growth strategy for the passenger car market, and
enhance our focus on advanced automotive technologies," said Dana Chairman and CEO
Joe Magliochetti. "GETRAG has a highly skilled workforce and a solid reputation for
precision engineering, quality, and innovation. We have great respect for this fine
organization and we are excited about expanding Dana's relationship with GETRAG."
Under the terms of
the agreement, Dana will acquire a 30-percent stake in GETRAG Cie, the parent company of
the GETRAG group of companies, and a 49- percent stake in GETRAG's North American
operations. Bill Carroll, president of Dana's Automotive Systems Group, will be named to
the Advisory Board of GETRAG GmbH & Cie.
strategic partnership will strengthen Dana's automotive offerings globally, and
particularly enhance our opportunities in the European passenger car market," Mr.
"Strategically, this transaction is very similar to our recent
collaboration with GKN to produce advanced driveline technologies. GETRAG's transaxle and
gear manufacturing technologies are highly complementary to our expertise and will enable
us to further develop our under-the-vehicle technology, products, and systems," he
GETRAG's chairman and CEO, said, "This agreement with Dana fits our strategy of
continued growth and complements in a great way our recently announced joint venture with
Ford. In both cases, GETRAG will benefit strategically by further developing ideas and
innovations to better serve our customers on a global basis. We are very pleased to
advance our relationship with another global leader in advanced automotive technology for
the benefit of both companies."
GETRAG is a major
supplier to the European automotive industry and has an excellent reputation for the
quality of its products and technologies. The company employs some 5,000 people in 11
manufacturing facilities worldwide. Its major customers include Audi, BMW,
DaimlerChrysler, Ford, GM/Opel, Jaguar, Porsche, and Volkswagen.
Ford-Werke AG recently signed a joint-venture agreement to develop and produce innovative
manual transmissions in Europe. Under terms of the agreement, Getrag will purchase a
50-percent interest in the joint venture encompassing Ford's manual transmission
manufacturing plants in Bordeaux, France; Cologne, Germany; and Halewood, U.K.; as well as
its technical center in Merkenich, Germany. The agreement also includes a 10-year gearbox
sourcing commitment from Ford.
Dana and GETRAG
will establish a joint technology council to explore ways to further advance automotive
applications for design and technology. The two companies will also create a joint
marketing council to bring the resulting new products and innovations to market rapidly.
The transaction is
subject to the approval of appropriate regulatory agencies.