Dana Corporation Chairman Proposes 10 Strategic Changes to Stimulate Improved Automotive Industry Performance

TRAVERSE CITY, Mich., Aug. 7, 2003 -- Dana Corporation Chairman and CEO Joe Magliochetti yesterday implored automotive industry leaders to accelerate the pace of change, and suggested 10 strategic changes to help return the industry to the zenith it previously enjoyed. Mr. Magliochetti delivered his remarks to automotive industry leaders attending the 38th annual University of Michigan Management Briefing Seminars in Traverse City, Mich.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )

"The speed of change is greater today than at any time in the 100-year- plus history of the automotive industry," he said. "And yet, if you consider our industry's recent results, it's clear that we still have a great distance to travel with regard to performance."

Mr. Magliochetti said the need for change is even more pronounced from a domestic standpoint. "The 'domestic' product is arguably better than it has ever been," he said. "But, the market says it's still not good enough. From an American perspective, we must all strive to rekindle the creativity, ingenuity, and enthusiasm that bred those classic American vehicles and the innovative accessories that once set the pace in our industry.

"We need to compete differently in this marketplace," he added. "We must chart a new course."

As part of his presentation, Mr. Magliochetti suggested 10 strategic changes the industry should adopt to improve today's business model.

  His suggested changes were:

   1.  Work to move from a provincial viewpoint to a truly global
       perspective;
   2.  Acknowledge and address the global demands on suppliers;
   3.  Widen our perspective on global competition;
   4.  Accelerate the pace of change, or face the consequences;
   5.  Grow industry relationships to make collective advances;
   6.  Take advantage of the power of strategic alliances and partnerships;
   7.  Sharpen our focus by pursuing depth, rather than breadth, for
       improved performance;
   8.  Adopt global best practices to meet ever-rising demands;
   9.  Speed technology development to deliver enhanced efficiency and
       value; and
   10. Embrace the modular trend to provide OEMs with comprehensive,
       holistic solutions.

"Our problems are not OEM problems, labor problems, or supplier problems," Mr. Magliochetti added. "We all have a critical role in the success of our industry."

Mr. Magliochetti shared his insights during a presentation titled, "The New Business Model: Are We Changing Fast Enough?" The session was part of the week-long Management Briefing Seminars, a premier gathering of global automotive industry leaders.

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs approximately 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported 2002 sales of $9.5 billion.