---

Dana To Rationalize Italian Manufacturing Facilities

13 January 1998

Dana To Rationalize Italian Manufacturing Facilities

    TOLEDO, Ohio, Jan. 13 -- As part of its continuing efforts to
improve customer service as well as efficiency, Dana Corporation
today announced the phase out of its Vimercate, Italy, axle manufacturing
facility.
    The Vimercate facility produces planetary axles for the agricultural and
construction markets.  Production will be transferred to three facilities in
Italy, the United States, and England.
    Nick Cole, president of Dana's Off-Highway Components Group, said, "The
rationalization of this facility is going to allow us to serve our customers
in a much more efficient manner.  It is also necessary for better asset
utilization and cost reduction."
    The consolidation is expected to be complete by late 1998 or early 1999.
"The Off-Highway Components Group remains committed to providing our customers
with high-quality products and services during the transition period and into
the future," Cole said.
    The move is the latest in a series of restructuring and rationalization
activities that have taken place within Dana's Off-Highway Components Group
during the last few months.
    Yesterday, the group announced the closing of its Greenville, S.C., valve
plant.  It has also announced a reduction in research and development
facilities from seven to three and has rationalized its Statesville, N.C.,
headquarters for the Spicer Clark-Hurth Off-Highway Components Division World
Engineering Center.  Additionally, the group has streamlined its purchasing
process worldwide.
    The Vimercate activity resulted in an after-tax charge of $9 million
(9 cents per share).  Costs associated with each of these activities were
recognized during the fourth quarter of 1997.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the automotive, heavy truck, off-
highway, engine, and industrial markets.  It also operates a leasing services
business, Dana Commercial Credit.  Founded in 1904 and based in Toledo, Ohio,
Dana employs more than 50,000 people in 30 countries and reported sales of
$7.7 billion in 1996.  The Internet address for Dana's home page is
http://www.dana.com.

SOURCE  Dana Corporation