Dana Corp. has signed a letter of intent to form a 50/50 joint-venture company with one of China's largest commercial-vehicle axle manufacturers, Dongfeng Motor Co. Ltd.
The planned joint venture will manufacture and assemble commercial-vehicle axles and components in China. In addition, it will have a research and technical center for manufacturing, materials, and systems development for medium- and heavy-duty axle products.
Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group, said, "When this joint venture is completed, we will have established the largest commercial-vehicle axle and component manufacturing company in China. With our technology and commercial-axle expertise, the joint-venture company will become a world-class, globally competitive supplier of medium and heavy axles for both Dongfeng Motor Co. Ltd., and Dana.
"In addition, the new company will serve as a key component-manufacturing base for Dana's global heavy-vehicle assembly operations."
Cole added, "Partnering with Dongfeng will enable the joint venture to develop and manufacture state-of-the-market components and systems at a much faster pace in order to better serve our customers. We expect the global commercial-vehicle markets to grow significantly in the next few years – especially in China, which has a growing transportation infrastructure.
Completion of the joint venture is subject to board approval by both companies, customary governmental approvals, and execution of a definitive agreement.
Dongfeng Motor Co., Ltd., of Xiangfan, China, is one of the largest commercial-vehicle manufacturers in China, producing a broad range of medium- and heavy-duty trucks and buses.
The planned joint venture will manufacture and assemble commercial-vehicle axles and components in China. In addition, it will have a research and technical center for manufacturing, materials, and systems development for medium- and heavy-duty axle products.
Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group, said, "When this joint venture is completed, we will have established the largest commercial-vehicle axle and component manufacturing company in China. With our technology and commercial-axle expertise, the joint-venture company will become a world-class, globally competitive supplier of medium and heavy axles for both Dongfeng Motor Co. Ltd., and Dana.
"In addition, the new company will serve as a key component-manufacturing base for Dana's global heavy-vehicle assembly operations."
Cole added, "Partnering with Dongfeng will enable the joint venture to develop and manufacture state-of-the-market components and systems at a much faster pace in order to better serve our customers. We expect the global commercial-vehicle markets to grow significantly in the next few years – especially in China, which has a growing transportation infrastructure.
Completion of the joint venture is subject to board approval by both companies, customary governmental approvals, and execution of a definitive agreement.
Dongfeng Motor Co., Ltd., of Xiangfan, China, is one of the largest commercial-vehicle manufacturers in China, producing a broad range of medium- and heavy-duty trucks and buses.
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