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Home arrow News arrow Auto component arrow Dana Holding Corp to Buy Commercial Vehicle Axle Business From Axles India
Dana Holding Corp to Buy Commercial Vehicle Axle Business From Axles India Print E-mail
Written by Krishna Kumar   
Tuesday, 26 April 2011
Chennai: Dana Holding Corporation, a supplier of driveline products and power technologies for vehicle manufacturers, has signed a definitive agreement with Axles India, Ltd. (AIL), to acquire select assets of AIL's commercial truck axle business. Under terms of the agreement, Dana will assume full ownership of AIL's axle drive head* and final axle-assembly operations.

Dana will also assume responsibility for the marketing, sales, and engineering of these medium- and heavy-duty axles. This is the company's third Investment in 2011. It is a part of Dana's strategy to expand presence in emerging markets.

Axles India is a joint venture of Wheels India Limited, Sundaram Finance Group, and Dana Holding Corporation. Started in 1983, Axles India supplies 180,000 pressed axle housings – from two manufacturing facilities – to medium- and heavy-duty commercial vehicle manufacturers annually.

AIL will continue to manufacture axle housings for Dana and other customers. Key customers of this business are Ashok Leyland and Mahindra & Mahindra.

Closing of the transaction, expected to be completed in the second quarter of this year, is subject to government regulatory approvals and customary closing conditions.  Dana's investment of $13 million in this transaction is expected to generate approximately $50 million in annual revenue.

"This agreement further extends our capabilities and operations in another rapidly growing market," said Mark Wallace, president of Dana's Heavy Vehicle Products Group.  "With the compound annual growth rate of India's commercial vehicle market at 8 percent, we have high expectations for this investment."

"Dana's recognized manufacturing and engineering leadership will be a key advantage in growing this business.  Introducing lean manufacturing and applying Dana's product engineering experience will benefit all of our customers," said Dana's Managing Director of India, BD Singh.

Dana's customer base includes nearly every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets.  Based in Maumee, Ohio, the company employs approximately 22,500 people in 26 countries and reported 2010 sales of $6.1 billion.

Dana broke ground in December on a new $20 million technical center in Pune, India, which will support commercial vehicle customers, as well as automotive and off-highway vehicle manufacturers.

*The axle drive head includes the pinion, ring gear, differential lock, bearings, lube pump, and yoke inside the axle housing.

Last Updated ( Tuesday, 26 April 2011 )
 
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