Dana Holding Corp. is raising its stake in Dongfeng Dana Axle Co. Ltd., a commercial-vehicle axle joint venture with China’s Dongfeng Motor Co. Ltd., to 50%. The acquisition of an additional 46% of the venture represents a $124-million investment for Dana, and makes it an equal owner of the operation in Xiangyang, China.
DDAC was formed in 2005 to produce truck axles in China, including drive, steer, tandem, and hub-reduction axles for light-, medium-, and heavy-duty trucks, and buses. It is the primary supplier of truck axles to Dongfeng Motor Co. Ltd. Dongeng manufacturers passenger cars and commercial trucks for the Chinese market.
With this investment, DDAC becomes Dana’s largest overseas axle manufacturing base. Recently, it acquired full ownership of the commercial-vehicle axle business of its Axles India Ltd. venture, in India, for a reported $13 million. Earlier this year Dana expanded its market share in South America by agreeing with forger SIFCO S/A to distribute commercial vehicle front and rear axles, driveshafts, and suspension components there. Adding those products makes it a full-service supplier of commercial driveline systems in the region, Dana said.
Dana has been manufacturing in China since 1991, and now produces off-highway axles, driveshafts, and transmissions; commercial vehicle driveshafts; light-duty axles and driveshafts; and thermal products, there. In May, Dana began construction of a technical center at Wuxi, China, where it will research, design, develop, and test driveline, sealing, and thermal products, including electric vehicle battery coolers.
"We are encouraged by the continued strong performance of the truck and bus markets in China, and of our partner Dongfeng, and look forward to the strengthened relationship," stated Dana president and CEO Roger J. Wood. "This is another important step in our ongoing drive to seek out opportunity in the Chinese market and expand globally."
Dana Increases Stake, Expands Manufacturing in China
Axle and driveshaft producer continues to grow its offshore production capacity