Dana Corp. announced Monday that its subsidiary, Dana Mauritius Ltd., and Dongfeng Motor Co. Ltd. have amended the agreement to develop their 50/50 joint venture, Dongfeng Dana Axle Co. Ltd.

Under the amendments and other agreements signed by both companies - and subject to certain government approvals - Dana Mauritius will make an initial payment of $5 million to Dongfeng for a 4 percent equity interest in the joint venture. Closing of this part of the transaction is expected to be completed by the end of this month. Dana Mauritius will purchase the remaining 46 percent equity interest after April 1, 2008, and within three years of receiving government approvals.
Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle's commitment to providing its customers with and axle components and systems.
Nick Stanage, president of Dana's Heavy Vehicle Products group, said, "Dongfeng Dana Axle will be the largest commercial vehicle axle supplier in Asia. For Dana's Commercial Vehicle Systems business, this joint venture also provides a great opportunity to balance and complement our extensive operations in North America."