Dana Announces More Than $150 Million in New Business
19 April 1999
Dana Announces More Than $150 Million in New Business
TOLEDO, Ohio, April 19 -- Dana Corporation today
announced a series of new business initiatives in the automotive aftermarket
totaling more than $150 million in annualized sales.
Dana's Brake Parts, Inc., was selected to supply brakes and brake
components to CARQUEST Corporation, a group of independent warehouse
distributors with more than 60 distribution centers serving some 4,000
automotive parts stores throughout the United States and Canada.
Dana will supply disc brake pads, brake shoes, hydraulic components and
kits, hardware, wheel and master cylinders, hoses, and cables, in addition to
the drums and rotors it currently supplies to CARQUEST. Sales are expected to
begin in the next 60 days.
"This is an important agreement with one of the fastest-growing
distributors in North America," said Dana President and Chief Executive
Officer Joe Magliochetti. "We see this as a continuation of opportunities
created with our acquisition of Echlin. The synergies involved in our plan
are showing their potential."
Likewise, the company said that its Wix Filtration Products Division had
been selected by Kmart Corporation to manufacture and market air and oil
filters beginning next month. Marketed under the Castrol(R) and Kmart Penske
CarCare(TM) brands, the oil and air filters produced by Dana will be available
in nearly 2,200 Kmart retail stores nationwide.
A part of Kmart's Penske CarCare program also includes Castrol(R)
MaxPro(R) and Castrol(R) MaxPro(R) Plus oil and air filters, which are also
manufactured by Dana.
Additionally, Dana's Engine Controls group was selected to supply engine
management products and wire sets to CSK Auto Inc. Sales of the products,
which are marketed under the Niehoff(R) brand, began in the first quarter of
1999.
CSK is an automotive parts retailer operating more than 800 stores in 13
western states. Its stores include Checker Auto Parts, Schuck's Auto Supply,
and Kragen Auto Parts.
Dana Engine Controls also was awarded ignition, fuel, carburetor, and
emissions products business -- which also began in the first quarter of 1999
-- by O'Reilly Automotive, Inc.
O'Reilly is a wholesale supplier and retailer of automotive aftermarket
parts. It has more than 450 stores in seven mid-central states.
Both CSK and O'Reilly have also added Dana's line of premium Borg-
Warner(R) Select(R) brand NASCAR(R) tune-up products.
"These recent successes in securing new business are based on the quality
of our products, programs, and people," said Larry McCurdy, president of
Dana's Automotive Aftermarket Group. "We are committed to providing these and
our other customers with excellent products and outstanding service."
OTHER FIRST-QUARTER BUSINESS PREVIOUSLY ANNOUNCED
Earlier in the quarter, Dana also announced that it had been selected to
supply cam cover modules for Jaguar's AJ-V6 and AJ-V8 engines, which will be
featured on the 2000-model-year S-Type passenger cars. The business
represents Dana's 20th engine cam cover application and reinforces Dana's
position as a global leader in non-metallic sealing modules.
During the first quarter, Dana also began production of front corner
modules for the Commodore passenger cars, manufactured in Australia by Holden
Limited, a GM subsidiary. In all, Dana has been asked to supply 200,000 front
corner modules and 100,000 rear driving modules annually. The contract
represents Dana's first modular entry into the Asia Pacific region and is
expected to generate sales of more than $100 million annually. The first
driving modules are expected to be shipped next month.
In support of its worldwide customers, Dana is establishing customer
support centers in the United States, Germany, and Japan. In fact, Dana's
108,000-square-foot Automotive Customer Support Center near Detroit should be
completed by September 1999.
Designed to be the focal point for the company's engineering and sales
efforts in the Detroit area, the facility will provide all of the North
American original equipment manufacturers with dedicated marketing,
engineering, and customer service representation.
One of the world's largest independent suppliers to vehicle and engine
manufacturers and related aftermarkets, Dana Corporation produces components
and systems found under the vehicles and under the hoods of millions of
applications. Founded in 1904 and based in Toledo, Ohio, the company operates
some 340 major facilities in 32 countries and employs more than 86,000 people.
Dana reported sales of $12.5 billion in 1998. Dana's Internet address is
http://www.dana.com.