Dana Corporation Reaches Partnership Agreement With UAW

Pact Represents Cooperative Approach to Maximizing Dana's Competitive Capability

TOLEDO, Ohio, Aug. 13 -- Dana Corporation today announced that it has entered into a partnership agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). The agreement is expected to benefit both Dana and the UAW by contributing to business growth, improved productivity, enhanced operational cost-efficiency, and continued workforce opportunities and options. Terms of the agreement were not disclosed by agreement of the parties.

"Both Dana and the UAW recognize that dramatic changes in the domestic automotive market have created new competitive challenges for automotive component suppliers," said Nick Cole, the company's senior executive with responsibility for labor relations, and President of Dana's Heavy Vehicle Technologies and Systems Group.

The partnership agreement establishes collective bargaining and representation principles for Dana's U.S. automotive assembly and manufacturing facilities serving DaimlerChrysler AG, Ford Motor Company, and General Motors Corporation. The agreement also establishes a cooperative approach with the goal of ensuring that labor agreements negotiated by the parties are competitive for Dana and its people.

"This agreement is a result of lengthy discussions with the UAW, during which both parties acknowledged the positive impact our relationship can have in maximizing Dana's competitive capabilities to successfully address marketplace challenges," Mr. Cole said. "Specifically, we are focused on achieving greater productivity, improved quality, and enhanced collaboration and coordination on the behalf of Dana's customers.

"Historically, Dana has enjoyed very good relations with the UAW at the Dana facilities in which it represents our workers," he added. "This new partnership agreement reinforces our relationship and supports the freedom our people have always enjoyed to choose whether or not they wish to be represented by a union."

Mr. Cole said the partnership agreement is one of several recent developments that position Dana well for the future. "Dana has substantially completed the largest restructuring program in our company's 99-year history, and we've achieved critical momentum in transforming our businesses," he said. "We believe this partnership agreement will further strengthen our competitive position by creating growth opportunities for our company and our people, which will enhance Dana's shareholder value."

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.