Dana Signs Deal to Supply Paccar

Dana Corp. (DCN) has entered into an agreement to be a supplier of standard equipment for Paccar (PCAR) trucks.

Details of the deal, including the term, were not disclosed, but a Dana press release indicated the company, based in Toledo, Ohio, will supply steer axles, drive axles, brakes, driveshafts and steering shafts as standard equipment on Paccar’s Kenworth and Peterbuilt Classes 6-8 trucks.

This means that, unless a customer specifies otherwise, the parts listed will be made by Dana.

“Dana is proud to continue its long-term relationship with Paccar,” said Rick Clayton, president of Commercial Vehicle Systems, a Dana subsidiary. “We continue to be committed to providing innovative products through advanced technology and responsiveness to customer needs. We are pleased to bring this level of product quality and professional service to Paccar and its customer base.”



Both companies have struggled recently under the weight of a sluggish economy and a glut in the used truck market that has driven down sales of new ones. Paccar’s truck sales declined 49.1% in April and are down 39.3% for this year as compared to last. Meanwhile, Dana, the world’s No. 2 manufacturer of heavy-duty truck axles, laid off 11,000 workers – 4,000 of them permanently – and has closed a Pennsylvania facility that employed another 700 workers.

“This supply agreement reflects the industry trend toward closer cooperation between OEMs and component suppliers to provide enhancements in improving vehicle performance,” said Gary Moore, senior vice president of Paccar.

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