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News of  March 28, 2001

Dana Corporation Reorganizes Commercial Vehicle Systems Unit; Realignment Reflects Growing Commitment To Global Customers, Markets

TOLEDO, Ohio - Dana Corporation announced that it has reorganized its former Heavy Truck strategic business unit, renaming it the Commercial Vehicle Systems strategic business unit.

"This new name more accurately reflects the global markets this unit serves," said Joe Magliochetti, Dana chairman and CEO. "This is not a cosmetic change; it is a realignment of this business unit for one of Dana's three key market sectors.  It is this kind of transformation that will expand our capabilities, introduce more proprietary technology, and provide value-added products, systems, and services to our customers, while generating exceptional benefits for our shareholders."

He noted that there are more than 1.5 million commercial vehicles produced globally; 40 percent are heavy trucks, and the remaining 60 percent are medium trucks, buses, and military and specialty vehicles.  In North America, the annual 400,000-unit market is split between medium and heavy trucks, and a trailer market of about 250,000 units annually.

Rick Clayton, an 18-year Dana veteran who has led the Heavy Truck Group since it was organized in 1997, will continue as president of the Commercial Vehicle Systems Unit.

"In the last three years, Dana has supplied its customers with components and systems for a record production of 1.5 million trucks and nearly one million trailers," he said.  "Now is the time to accelerate new product and system introductions.  In doing so, we also must expand our capabilities, rationalize our assets, and improve our capital efficiency."

Clayton outlined the following organization and divisional name changes that more accurately reflect the markets of the business unit:

In North America, the former Heavy Axle and Brake Division and Trailer Products Division have been transformed into two new divisions. Much of the Heavy Axle and Brake Division has been renamed the Commercial Vehicle Axle Division and will focus on drive axles, proprietary OEM axles, modules, and related components.  In addition, North American sales to the major truck, bus, and military and specialty OEMs will continue to be the responsibility of this division, which will continue to be led by Norm Boisvert (23 years of service).

A new Ride and Control Systems Division combines elements of trailer axles, along with new components and systems, including auxiliary axles, steer axles, brake systems, tire management systems, and truck and trailer modules. This division will be headed by Greg DiMarco (14 years of service) and will introduce systems that will include modules and suspensions.

The Commercial Vehicle Axle Division and Ride and Control Systems Division will be co-located at the Commercial Vehicle Technology Center in Kalamazoo, Mich., where the two divisions will share people, program, test, and financial resources.

In addition to these changes, the Heavy Axle and Brake Division - Europe, and Heavy Axle and Brake Division - South America, will conduct business as the Commercial Vehicle Systems Division - Europe and South America, respectively.  Josetxo Zugaldia (16 years of Dana service) will continue his responsibilities for Europe, and Horacio Sciliar (21 years of service) will retain his leadership for the South American market.   These divisions will execute the unit's business initiatives and represent the full product, systems, and service breadth of the entire Commercial Vehicle Systems Unit in their respective regions.

The Commercial Vehicle Service Parts division will integrate the global parts and marketing functions under one banner.  Len Newblom (32 years of service) will be in charge of this division, which has a mission to provide timely and innovative solutions and to deploy e-business initiatives to all service parts customers in the commercial vehicle market.

The Dana Commercial Vehicle Systems Unit designs, manufactures, and markets front-steer, rear-drive, trailer, and auxiliary axles; driveshafts; steering shafts; brakes; and related systems, modules, and services.  Major components and modules are marketed under the Spicer(R) brand name.  Dana's strategic alliance with Eaton Corporation's truck components provides innovative drivetrain solutions under the Roadranger(TM) System.

(March 26, 2001)

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