Dana Corp. loses contract with Mack Trucks

| 6/14/2002

Dana Corp. said it will lose contracts to supply truck axles and chassis to Volvo AB's Mack Trucks unit that generated about $300 million in sales for the auto-parts maker last year.

Mack has decided not to extend a chassis agreement that concludes at the end of 2003 and axle contracts that expire in May 2004, Dana said in a released statement.

The orders generated about $293 million in sales last year, Dana said. About $120 million of the revenue was for parts Dana made, with the rest representing costs passed along for other companies' components and assembly work that went into the axles and chassis.

Toledo, OH-based Dana had a loss of $298 million on sales of $10.3 billion last year as the region's heavy-truck output declined and automakers in North America built fewer cars and passenger trucks. Last October, the company said it would eliminate 11,250 jobs and close or combine more than 30 plants and offices in its largest-ever restructuring.