Dana Incorporated (Formerly Dana Holding Corporation) Business Report FY ended Dec. 2019

Financial Overview

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 Rate of
change (%)
Net Sales  8,620 8,143 5.9 1)
Net Income 233 440 (47.0) -
Sales by segment
Light Vehicle 3,609 3,575 1.0 2)
Commercial Vehicle 1,611 1,612 (0.0) 3)
Power Technologies 1,040 1,112 (6.5) 4)

1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2019 increased 5.9% from the previous year to USD 8,620 million. Acquisitions of a number of companies, including ODS, SME, PEPS, Nordresa and TM4 and the divestiture of the Company’s Brazil suspension components business in total resulted in an increase in sales of USD 654 million. Negative foreign currency translation effects decreased sales by USD 177 million. Organic sales grew in North America due to increased medium and heavy truck production. European organic sales decreased due to weakening demand in the second half of the year, while Asia Pacific organic sales were negatively impacted due to a weakening of China’s economy. Organic sales in South America remained relatively stable.

2) Light Vehicle segment sales
-Sales in the Company’s Light Vehicle segment in the fiscal year ended December 31, 2019 totaled USD 3,609 million, an increase of 1.0% over the previous year. Excluding currency and acquisition effects, the segment’s sales increased by 2% over the previous year. Sales increases from the conversion of the segment’s backlog was partially offset by decreased full frame truck production in the Asia Pacific region, as well as a sales volume decline from one of the Company’s largest customer programs of production of an outgoing model. Customer pricing and cost recovery impacts decreased sales by USD 13 million.

3) Commercial Vehicle segment sales
-In the fiscal year ended December 31, 2019, sales in the Company’s Commercial Vehicle segment remained level from the previous year, totaling USD 1,611 million. Sales in the segment, excluding currency effects and the net impact of acquisitions and divestitures, increased by 2% during the year. Increased production levels of medium and heavy trucks, particularly in the first half of 2019 in North America and throughout the year in Brazil, contributed to the segment’s increase in sales.

4) Power Technologies segment sales
-The Company’s Power Technologies segment had sales of USD 1,040 million in the fiscal year ended December 31, 2019, a decrease of 6.5% from the previous year. Sales, excluding currency effects, decreased by approximately 4% from the previous year due to decreased market demand and program roll offs.


-The Company has completed the acquisition of Nordresa Motors, Inc., based in Montreal, a prominent integration and application engineering expert for the development and commercialization of electric powertrains for commercial vehicles. Nordresa's founders will serve in leadership positions at the Company. The investment further enhances the Company’s electrification capabilities by combining its complete portfolio of motors, inverters, chargers, gearboxes, and thermal management products with Nordresa's proprietary battery-management system, electric powertrain controls and integration expertise with the propulsion systems, power steering, air conditioning compressors, and other accessories that are specifically engineered for battery electric solutions. (From a press release on August 26, 2019)

-The Company completed the acquisition of the Drive Systems segment of the Oerlikon Group, including the Graziano and Fairfield brands. The acquisition expands the Company's capabilities in electrification and further optimizes its manufacturing presence in key growth markets. The addition of the Drive Systems segment extends the Company’s current technology portfolio, especially in the area of high-precision helical gears for the light- and commercial-vehicle markets, grows its electronic controls capability for transmissions and drivelines through the acquisition of VOCIS, a wholly owned business of Oerlikon Drive Systems, and further expands its motors technologies through Ashwoods Electric Motors. The acquisition also adds four research and development facilities to the Company’s extensive network of technology centers, and adds 12 facilities to its global manufacturing footprint. (From a press release on March 1, 2019)

-The Company completed the acquisition of the SME Group, headquartered in Arzignano, Italy. SME Group designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors, inverters, and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles. The Company’s existing portfolio of Spicer Electrified with TM4 motors and inverters combined with SME's low-voltage motors will expand the its capabilities to applications ranging up to 250kW. The privately held SME Group employs more than 100 people and operates in China, Germany, Canada, and Italy. (From a press release on January 15, 2019)

Joint Ventures

-Hydro-Quebec has invested CAD 85 million to secure the growth of Dana TM4, a joint venture between the Company and Hydro-Quebec, in the electric powertrain sector. The investments will allow Hydro-Quebec to maintain its 45% interest in Dana TM4, which will now hold 100% of Chinese company Dana Electric Motor Co. Ltd., in which Dana TM4 previously held a 50% interest. Dana Electric Motor Co., formerly called Prestolite E-Propulsion Systems (PEPS), manufactures and markets electric powertrain systems, primarily for buses and trucks. Dana TM4 will also integrate activities of Italy-based electric motor company SME, which has developed a range of electric motors and controls for off-highway electric vehicle applications. This investment enables Dana TM4 to offer electric powertrain systems for all types of vehicles, including light vehicles, commercial vehicles, and off-highway vehicles. (From a press release on July 31, 2019)

Business Partnership

-Valeo and the Company announced a global collaboration to bring end-to-end 48V hybrid and electric vehicle systems to market. The first of these will be released in early 2020 with a major European carmaker on series-produced cars. The systems provide all the components required to electrify light urban vehicles and hybridize vehicles weighing up to 2.5 tons. They comprise an electric motor and an inverter designed and manufactured by Valeo, and a Spicer Electrified e-Gearbox developed by the Company. Consistent, optimized and easy to install on all types of vehicles, the comprehensive solution resulting from the partnership is especially attractive because its low voltage configuration is affordable and low maintenance. (From a press release on October 3, 2019)

Recent Developments

-The Company launched its total-cost-of-ownership calculator for the commercial vehicle market. Fleets and independent operators can utilize this calculator to make comprehensive cost comparisons between traditional diesel platforms and fully electric powertrain solutions. The calculator is pre-populated with common operating parameters for six key "electrification-first" applications. Total cost of ownership calculations include fuel, equipment, and a total of "other" costs to provide a summary assessment of the total cost per mile and the total annual cost for operation. The user is able to toggle between the diesel evaluation and the full electric evaluation, as well as display both calculations for a side-by-side comparison. (From a press release on February 7, 2019)


-The Company is partnering with a major North American commercial vehicle manufacturer to supply complete e-Powertrain systems for a medium-duty vehicle program beginning in 2020. The new trucks will feature the Company’s Spicer Electrified powertrain technologies and are expected to be on the road in early 2021. The three-year program is expected to generate approximately USD 200 million in incremental sales, with vehicles available for order from the manufacturer in the second half of 2020. The system consists of the battery packs, battery management system, on-board charger, power electronics cradle, and electrified auxiliary systems. (From a press release on October 28, 2019)

-The Company will provide its Spicer Electrified e-Propulsion solution with integrated TM4 SUMO HP motor-inverter system to power Class 8 tractor-trailer units that will move freight year-round between Edmonton and Calgary in Alberta, Canada. The trucks are part of a three-year, CAD 15 million Alberta Zero-Emissions Truck Electrification Collaboration (AZETEC) project, which involves the design and manufacture of heavy-duty, extended-range, hydrogen fuel cell electric hybrid trucks. Emissions Reduction Alberta (ERA) is committing more than CAD 7.3 million to the AZETEC project. AZETEC will test hydrogen as a zero-emission alternative fuel to diesel for freight transportation, along with the refueling infrastructure and other systems that would be required for implementation. (From a press release on August 1, 2019)

-The Company has been chosen as a preferred supplier to the Canadian-based Lion Electric Company for traditional and electrified components on its all-electric urban Class 8 vehicle, the Lion8, which is currently available for ordering. The Lion8 will include the TM4 SUMO HD direct-drive motor, BCI20 charger and inverter, Neuro vehicle controller, Spicer DS404 drive axles, and SPL 250 driveshafts. Founded in 2008, Lion Electric develops and manufactures all-electric architectures for Class 5-8 trucks; full-size school buses; and midi- and mini-buses for paratransit, school, public transit, and public transportation. (From a press release on March 18, 2019)

-The Company has entered into a strategic partnership with Class 8 electrification company Hyliion Incorporated. The Company will take an equity position as a lead investor in Hyliion. Under the agreement, the Company becomes Hyliion's source for traditional driveline components, as well as fully integrated e-Axles, which include motors, inverters, controls, gearboxes, and thermal-management technologies. Hyliion, founded in 2015, develops intelligent, electric-hybrid architectures for Class 8 vehicles that can be installed on new trucks or retrofitted on existing trucks, essentially turning a traditional 6x2 truck into a 6x4 hybrid. The Hyliion 6X4HE features its proprietary machine learning algorithms and battery technology to optimize fuel savings and vehicle performance for reduced emissions and a better driver experience. (From a press release on March 7, 2019)


-The Company expects that its sales for the fiscal year ending December 31, 2020 will be between USD 8,250 million and 8,750 million.

R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Overall 271 252 220
% of Sales 3.1 3.1 3.1


R&D Facilities

-As of December 31, 2019, the Company has seven standalone technical and engineering centers. In addition, the Company has nineteen additional locations that conduct research and development activities.

Product Development

TM4 SUMO LD direct-drive electric powertrain
-The Company announced the launch of its newest direct-drive electric powertrain, the TM4 SUMO LD. The motor-inverter combination is designed for Class 2 through Class 6 vehicles and extends the comprehensive TM4 SUMO lineup, which is currently powering more than 12,000 electrified vehicles. Designed primarily for current direct-drive architectures, the TM4 SUMO LD will also provide a modular solution for future transitions to widespread e-Axle platforms that include light commercial, minibus, and medium-duty trucks and buses, as well as heavy-duty Class 8 hybrid vehicles. With three available models, the TM4 SUMO LD offers up to 250 kW of continuous power and 1,200 Nm of torque, and is matched with a three-phase CO150 inverter, already used in thousands of vehicles worldwide. (From a press release on April 25, 2019)

TM4 MOTIVE motor and inverter
-The Company introduced its enhanced TM4 MOTIVE motor and inverter for the light vehicle market. The new TM4 MOTIVE motor and inverter are an integrated system featuring high-RPM permanent magnet electric motors, power-dense electronic inverters, and advanced controls that seamlessly integrates with the Company’s Spicer gearboxes and e-axles for electric vehicles. Optimized for passenger cars applications up to Class 2 commercial vehicles, the TM4 MOTIVE motor and inverter can be used individually as the front or rear drive for small passenger vehicles, or multiple systems can be configured to operate in tandem for higher gross vehicle weight applications. The system is available now for customer testing, with production in China scheduled for 2020. (From a press release on April 17, 2019)

Composite and metallic bipolar plates
-The company is applying its extensive fuel cell expertise to the design and manufacturing of composite and metallic bipolar plates for public transportation systems, such as eBus and hydrail applications. Through its flexible manufacturing process, the Company’s composite bipolar plate assemblies can be customized to meet the customer’s individual needs and requirements. In addition, the Company designs and manufactures metallic bipolar plates. Manufactured with the Company’s patented integrated sealing technology and in-line conductive coating, the ultra-thin metallic bipolar plates deliver superior power density, reliability, and durability. The Company’s unique plate manufacturing, which utilizes high-precision, high-speed stamping and sophisticated laser welding, aids in its ability to streamline production and offer customers a cost-effective product. (From a press release on April 1, 2019)

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Light Vehicle 179 195 279
Commercial Vehicle 52 27 31
Off-Highway 85 36 32
Power Technologies 46 36 32
Eliminations and other 64 31 19
Total 426 325 393

-The Company expects to have capital expenditures of approximately USD 380 million, or 4.5% of its net sales, in the fiscal year ending December 31, 2020.