Dana Reorganizes Truck Supply Divisions

Dana Corp. (DCN), the No. 2 manufacturer of heavy-duty axles worldwide, said it has reorganized its heavy-truck division, to develop products more efficiently and to introduce them faster.

The Toledo, Ohio-based company said it does not plan to cut any jobs despite the reorganization. It employs about 75,000 workers worldwide in about 300 facilities.

Vehicle-parts makers like Dana have been hurt recently by declining production of heavy- and medium-duty trucks. In North American, heavy truck output fell 25% last year as higher interest expense and fuel costs curbed demand.

Dana recently reported that its fourth-quarter profit from operations sank 99% due to reduced production. Similarly, ArvinMeritor, the largest maker of heavy-truck axles, last week cut its 2001 earnings estimates for the same reason.

Dana said it has renamed its heavy trucks strategic business division, to be its commercial vehicle systems business division.

Also, its heavy axle and brake and trailer products division will now be split into the commercial vehicle axle division and the ride-and-control division.

“It is this kind of transformation that will expand our capabilities, [and] introduce more proprietary technology,” said Joe Magliochetti, Dana’s chief executive officer.

(Click here for the full press release.)

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