Dana, SIFCO reach steer axle agreement
Mar 1, 2011 12:14 PM
Dana Holding Corporation has taken action to become a full-service provider of driveline systems in the growing South American commercial vehicle business.
The company completed a strategic transaction with SIFCO SA, a producer of steer axles and forged components in South America. The agreement enables Dana to add truck and bus steer axles to its product offering in South America and effectively positions the company as a full-line supplier of commercial vehicle drivelines, including front and rear axles, driveshafts, and suspension components.
Under the agreement, Dana acquired the distribution rights of commercial vehicle steer axle systems and is now responsible for all customer relationships, including marketing, sales, engineering, and assembly. Key customers in the Brazilian commercial vehicle market include Agrale, Ford, Iveco, MAN, Mercedes Benz, Scania, and Volvo.
Dana obtained an exclusive, long-term supply agreement with SIFCO to ensure supply of key components in the systems—specifically I-beams, steer arms, and knuckles. In addition, SIFCO will provide selected assets and assistance to Dana to establish, in the near term, assembly capabilities for these systems.
Dana’s investment of $150 million to acquire the rights to the business is expected to generate $350 million in annual revenue, taking Dana’s total annual revenue in South America to more than $1 billion. Total units sales of commercial vehicles in Brazil totaled 248,000 in 2010.
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