Dana Corp. has signed a formal letter of intent to form a 50/50 joint-venture company with Dongfeng Motor Co. Ltd., one of China's largest commercial-vehicle axle manufacturers.
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.
"When this joint venture is completed, we will have established the largest commercial-vehicle axle and component manufacturing company in China," said Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group.
Cole added that the new company will serve as a key component-manufacturing base for Dana's global heavy-vehicle assembly operations, which will enable it to provide the highest-quality, most cost-competitive components and systems anywhere in the world.
Completion of the joint venture is subject to board approval by both companies, customary governmental approvals, and execution of a definitive agreement.