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Dana Corporation Supplies IRS for New Falcon

Staff, Tuesday May 21, 2002.

Page 1 of 1

Dana Corporation Supplies IRS for New FalconDana Corporation Supplies IRS for New Falcon

Dana Corporation announced today it would be supplying independent rear suspension systems ? in sequence and just-in-time ? for the new Ford Falcon due later this year.

Dana will supply the systems from its facility in the newly developed National Business Park, located adjacent to Ford Australia?s Campbellfield vehicle assembly plant.

The moment a new Falcon starts down the assembly line, the Dana facility receives an electronic message containing the model specification and type of suspension module required for that vehicle. After assembly, the finished module is scanned to provide full traceability and loaded in sequence to be shipped to Ford.

Deliveries are made every 24 minutes and there is a 2½-hour window from the time the original broadcast comes from the customer until the final system is assembled in the vehicle.

Through the co-location of Dana engineers in Ford?s product development facilities, Dana and Ford were able to collaborate on the design and development of the independent rear suspension system.

The collaboration will achieve significant cost savings due largely to improvements in design and process efficiencies, such as faster response times to customer issues and a shorter lead-time from the design to the manufacturing stage. In addition, logistical benefits will result from the proximity of the Dana and Ford facilities. Ultimately, these efficiencies will offer consumers a higher-quality, lower-cost vehicle.

?By being involved in the early stages of the design and development of this system, we were able to capture potential synergies and identify and address issues earlier in the product development process,? said Steve Hanley, vice president of Dana?s Systems Integration Group.

?This is an excellent example of a true collaboration between an OEM and a Tier I supplier. In fact, by working together, we have successfully eliminated one prototype build for Ford and cut design and development time by some 50 per cent in comparison to typical practices just 10 years ago.?

Dana is also providing Ford with complete Tier II supply-chain and inventory management. The finished system consists of 78 components from 27 suppliers.

A Dana-developed, unique and portable LeanERP? system is used to ensure that the 25 possible variations of the system are built to the correct sequences.

?This program really adds to Dana?s growing expertise in systems integration," said Bill Carroll, president of Dana?s Automotive Systems Group. ?We were awarded this business based on our overall capabilities, as well as our success with other systems integration projects. We have significant design responsibility for these systems, and have been able to integrate Dana?s structural, suspension, traction, and torque management technologies into one complete system.?

Dana?s Automotive Systems Group is a leading provider of under-vehicle integration technology for automotive manufacturers worldwide. The group offers advanced driveline design, drivetrain torque and traction technologies, chassis design solutions, advanced modularity concepts, complete integrated systems engineering, and program and logistics management. Drawing upon a century of vehicular expertise, its products include Dana Spicer axles, drivelines, and structural products; GETRAG differentials, PTUs, and transaxles; Tremec transmissions; Nakata steering and suspension systems; and FTE brake and clutch actuation systems. The group focus is environmentally friendly innovations to improve overall vehicle handling performance and comfort.

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs approximately 70,000 people worldwide, including about 1,200 people in Australia, ? all dedicated to achieving innovation through close collaboration with customers. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 34 countries. The company reported sales of $10.3 billion in 2001.

For further information contact:
Ford Australia Communications
Phone:(03) 9359 8491

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