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Dana to Supply Modules to Volkswagen in Brazil

11 May 1998

Dana to Supply Modules to Volkswagen in Brazil

    TOLEDO, Ohio, May 11 -- Dana Corporation today
announced that its Brazilian joint venture has been selected to supply a
variety of modules to Volkswagen A.G. for passenger cars built in Sao
Bernardo, Brazil.
    Through Sistemas Modulares Ltda., the Brazilian joint venture between Dana
and Freios Varga, a unit of LucasVarity plc, Dana will supply front and rear
suspension modules and engine cradles for the Volkswagen's Gol, Santana, and
Saveiro passenger cars.  Sistemas Modulares will use a regional just-in-time
facility in Anchieta, Brazil, to support the program and expects to begin
supplying components to Volkswagen by late summer.
    "This new business is significant in that it builds on our existing
relationship with Volkswagen in Brazil," said Mike Laisure, vice president,
Modular Systems.  "Our modules or components will now be on the majority of
Volkswagen passenger cars produced in Brazil."
    Sistemas Modulares currently assembles modules for Volkswagen's Gol and
Parati models in Taubate, Brazil.  Altogether, Dana's affiliate will supply
more than one half million modules annually to Volkswagen for its four
Brazilian passenger car platforms.
    Chedo Eterovic, president of Dana South America, said the expanded
business with Volkswagen contributes to Dana's solid growth trend on the
continent.  "The continued development of Dana's South American capabilities
has boosted regional sales by Dana and its affiliates to more than $1 billion
annually," Eterovic said.  "Combined with Dana's four decades of experience in
South America, these growing resources are helping us better serve our global
customers."
    Dana's modular activity in South America is wide ranging, involving active
projects with major original equipment manufacturers including Chrysler
Corporation, Fiat S.A., Ford Motor Company, General Motors Corporation, Toyota
Motor Corporation, and A.B. Volvo.  These projects range from corner modules
to the world's first supplier-provided rolling chassis for a light truck,
which Dana expects to begin assembling in June.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and services for the automotive, engine, heavy truck,
off-highway, industrial, and leasing markets.  Founded in 1904 and based in
Toledo, Ohio, Dana operates facilities in 30 countries and employs more than
50,000 people.  The company reported record sales of $8.3 billion in 1997.
The Internet address for Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation