Dana Corporation and GKN Plc Announce Strategic Alliance to Develop Advanced Driveline Systems and Modular Assemblies

Companies Accelerate Technological Developments

and Improve Customer Speed to Market

Mar 29, 1999, 00:00 ET from Dana Corporation

    TOLEDO, Ohio, March 29 /PRNewswire/ -- Dana Corporation (NYSE:   DCN) and
 GKN plc today announced agreements to form a strategic alliance to design
 advanced driveline systems for all-wheel and four-wheel drive passenger cars,
 light trucks, and sport utility vehicles, and to jointly develop modular
 assemblies for passenger car and light-vehicle applications worldwide.
     "This is a smart alliance of two global leaders in the auto industry that
 will bring unprecedented benefits to our customers.  These agreements mean GKN
 and Dana will pool resources, skills, and technology," said Joe Magliochetti,
 chief executive officer of Dana Corporation.  "The dynamics of this alliance,"
 said CK Chow, chief executive of GKN plc, "will strengthen the innovative
 product offering of both companies."
     Bill Carroll, president of Dana's Automotive Systems Group, said, "This
 relationship will allow Dana's customers to benefit from the development of
 next-generation axle and systems technology."  Dana and GKN will establish an
 office in Auburn Hills, Mich., to provide an integrated work environment for
 engineers from both companies, he said.
     Sarkis Kalyandjian, executive director and chief executive of the
 automotive driveline division for GKN, said, "GKN and Dana have worked in
 partnership for years in successful automotive driveline joint ventures in
 Mexico and South America.  These agreements strengthen an already rock-solid
     In addition, Dana and GKN announced an agreement to exchange certain
 assets that allow each company to focus more strongly on its core
 competencies.  GKN is a global leader in CV joint driveshaft technology, and
 Dana is an established global leader in the development of cardan-jointed
 vehicle propeller shafts and axle technology.
     Under the agreements, Dana will exchange its constant velocity joint
 business for GKN's global cardan-jointed propeller shaft business.  This
 includes Dana's Columbia, S.C., manufacturing operation; Dana's constant
 velocity joint venture interests in Argentina and Colombia; and a majority
 interest in the companies' Brazilian joint venture.  GKN will have the option
 of purchasing Dana's remaining interest in the Brazilian operation as of
 January 1, 2001.
     In the exchange, Dana will acquire all of GKN's medium and heavy-duty
 cardan propeller shaft operations in France, Germany, Italy, and Sweden; as
 well as a minority interest in GKN's European light-duty cardan-jointed
 propeller shaft operations, which includes facilities in the United Kingdom
 and Spain.  Dana will have the option to obtain a controlling interest in
 these operations at a later time.
     These transactions are subject to the completion of due diligence,
 negotiation of a definitive agreement, approval of the companies' respective
 boards, and approval of appropriate regulatory agencies.
     Dana Corporation is one of the world's largest independent suppliers to
 vehicle manufacturers and the aftermarket.  Founded in 1904 and based in
 Toledo, Ohio, the company operates some 330 major facilities in 32 countries
 and employs more than 86,000 people.  The company reported sales of
 $12.5 billion in 1998.  Dana's Internet address is www.dana.com.
     GKN is a global industrial company with sales exceeding 3.7 billion
 pounds.  It designs, develops, and manufactures automotive and agritechnical
 components, as well as aerospace and defense products and provides a range of
 industrial services.  GKN's operations are located in more than 40 countries
 around the world, employing some 35,000 people in its subsidiaries, and a
 further 12,300 in joint ventures.  GKN's Internet address is www.gknplc.com.

SOURCE Dana Corporation