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Nov 1, 2003 12:00 PM

Dana Corp has signed a formal 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. It also 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.”

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, based in Xiangfan, China, is one of the largest commercial-vehicle manufacturers in China, producing medium- and heavy-duty trucks and buses.