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Dana President: Shared Vision, Increased Collaboration are Keys to Meeting Customer/Shareholder Expectations

25 November 1997

Shared Vision, Increased Collaboration are Keys to Meeting Customer, Shareholder Expectations, Dana President Tells Audience

    CLEVELAND, Nov. 25 -- Original equipment manufacturers and
the supply community must work more closely to maximize their potential and
meet customer and shareholder expectations, Dana President Joseph M.
Magliochetti told an audience of automotive industry leaders last week.
    Magliochetti spoke as part of a Blue Ribbon Panel at the annual Society of
Automotive Engineers (SAE) International Truck & Bus Meeting held in
Cleveland.
    "OEMs and the supply community must work more closely early on in the
development of vehicles to avoid duplication of investment," Magliochetti
said.  "OEMs simply can't afford the additional time and expense required to
double-check the work that's being performed by the supply chain.
    "Fundamentally, we're talking about capital efficiency," he added.  "We,
as OEMs and suppliers, need to find a way to come closer together in order to
ensure that we're meeting the expectations of our customers and shareholders.
And this means getting the proper returns on the capital employed by our
companies."
    Magliochetti said increased collaboration will also help suppliers like
Dana deliver real value and true innovation to their customers.  "It will also
help improve our collective image on Wall Street," he said.  Magliochetti
cited a recent report estimating that the price-to-earnings ratio for the Big
Three automakers was just 39 percent of that of the S&P 500 as a whole.
    "The automotive industry is not getting sufficient recognition for its
intellectual property," he added.  "While the wealth of a company was once
measured in its hard assets:  buildings, land, and equipment, it is now
measured in its ability (perceived or otherwise) to innovate and deliver real
value."
    Looking forward, Magliochetti said suppliers and OEMs alike need to find
innovative ways to enhance collaboration among suppliers.  This will most
certainly involve increased activity in the modular systems arena, he said,
where suppliers will move from contract assembly to "design and build."
    The integration of information technology will also be critical as it
relates to meeting the logistical challenges of the transportation industry,
Magliochetti said.
    "As the supplier consolidation process is showing us, we must build on our
strengths, supplement our weaknesses, and concentrate on our core capacities,"
he said.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the automotive, engine, heavy truck,
off-highway, and industrial markets.  It also operates a leasing services
business, Dana Credit Corporation.  Founded in 1904 and based in Toledo, Ohio,
Dana operates facilities in 30 countries and employs more than 48,000 people.
The Internet address for Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation