Dana Spicer Recieves Order To Supply Truck Parts Worth $600 Million

TOLEDO, Ohio, Oct. 31 -- Dana Corporation announced today that it has been selected by a major North American original- equipment manufacturer to supply torque management systems and complete structural solutions for a future pickup truck platform.

The program, which is scheduled for launch as early as 2003, will encompass vehicles manufactured in North America and South America. The business, for the life of the contract, is worth nearly $600 million for Dana, with annual volumes approaching 300,000 units annually, according to the manufacturer's estimates.

The torque management systems will feature driveshaft assemblies that contain Spicer Life Series(R) universal joints -- providing extended performance and maintenance-free operation. The u-joints contain triple lip seals for improved grease retention, seal guards that provide a barrier to external contaminants, and nylon thrust washers for improved flex effort and virtually no trunnion wear. The systems will be supplied by Dana's Spicer Driveshaft group, which was selected last year as a recipient of the Malcolm Baldrige National Quality Award.

Additionally, Dana's Structural Solutions Group is constructing a new, highly sophisticated and technologically advanced facility to supply complete structures for the project. The facility will have an innovative approach to supply-chain management and will be 100-percent connected to its suppliers, allowing Dana to be more flexible in responding to its customer's needs. The new facility will also reduce the time necessary for delivery of the product by employing advanced line-sequencing techniques.

"This is an exciting piece of new business, which substantiates Dana's strategy to strengthen our advanced chassis and drivetrain systems capabilities globally, while providing long-term earnings growth for our shareholders," said Joe Magliochetti, Dana chairman and CEO.

Bill Carroll, president of Dana's Automotive Systems Group. "This new business is an excellent example of Dana's resolve to be a integrated partner with our customers -- as well as Dana affiliations around the globe -- to deliver technologically advanced products and services with the advantage of local content."

The driveshaft and structural operations are part of Dana's Automotive Systems Group, which provides under-the-vehicle products, integrated modules and systems to customers anywhere in the world. The Automotive Systems Group encompasses advanced innovations in driveline systems including Spicer(R) axles and driveshafts, structures and chassis systems, Nakata(R) steering and suspensions, FTE(R) automotive brake and clutch systems, and a systems engineering integration and logistics unit.

Dana Corporation is one of the world's largest suppliers of components, modules and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 34 countries and employs approximately 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is http://www.dana.com .