July 10, 2006 -- Dana Corp. has dissolved its joint-venture organization with Desc S.A. de C.V., leaving Toledo, OH-based Dana with 100% ownership of several operations in Mexico that will operate as a new subsidiary, Dana Holdings Mexico, S. de R.L. de C.V.
The operations that Dana now controls manufacture and assemble light-vehicle axles, driveshafts, gears, forgings, and castings. They are: Autometales, S.A. de C.V. and Ejes Tractivos, S.A. de C.V. in Mexico City; and Cardanes, S.A. de C.V., Engranes Conicos, S.A. de C.V., and Forjas Spicer, S.A. de C.V. in Queretaro.
Dana previously held an indirect 49% interest in these operations through the joint venture. The former partner, Desc, gains full ownership of an operation manufacturing transmissions and aftermarket gaskets, and also receives a $19.5 million payment from Dana.
According to Dana chairman and CEO Mike Burns, "Taking full ownership of these core operations further solidifies our competitive profile. In particular, Dana expects to benefit from the addition of technologically advanced operations supporting our core axle and driveshaft businesses, as well as the manufacturing cost efficiencies that come with expanding our global presence in this key competitive location."
The split was first announced last November.
Dana filed for Chapter 11 bankruptcy in March, “to address financial and operational challenges that have hampered its performance.”