Mack to drop Dana as a supplier of chassis and axles

TOLEDO, Ohio (June 14, 2002) — Dana Corp. said Mack Trucks has decided to end a 15-year relationship between the two companies that saw Dana supply chassis assemblies and groomed axles for Mack’s on-highway and vocational trucks.

In a press release, Dana said the current chassis assembly agreement expires at the end of 2003, and the axle agreements expire in May 2004.

Nick Cole, president of Dana’s Heavy Vehicle Technologies and Systems Group, said the Mack contracts generated revenue of approximately $293 million US in 2001. Approximately $120 million of these sales consisted of Dana-manufactured components, and the balance was purchased parts, assembly, and other related fees.

“This is a difficult decision due to tough market conditions and restructuring needs, and is not a reflection on the people of Dana, who have delivered quality chassis systems,” said Carlos Hungria, Mack’s vice-president of purchasing.

Dana-Mack contract relationships date back to the mid-1980s, when Dana began supplying fully assembled chassis to Mack’s Macungie, Pa., and Winnsboro, S.C., plants.