Dana Incorporated Business Report FY ended Dec. 2015

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Rate of
change (%)
Net Sales  6,060 6,617 (8.4) 1)
Net Income 180 328 (45.1) -
Sales by segment
Light Vehicle 2,482 2,496 (0.6) 2)
Commercial Vehicle 1,533 1,838 (16.6) 3)
Power Technologies 1,005 1,052 (4.5) 4)

1) Net Sales
-The Company's sales decreased 8.4% in the fiscal year ended December 31, 2015 to USD 6,060 million. While increased volumes added USD 65 million to sales, negative currency exchange effects and the divestiture of the Company's operations in Venezuela decreased sales by USD 516 million and USD 107 million, respectively.

2) Light Vehicle segment sales
-In the fiscal year ended December 31, 2015, sales in the Company's light vehicle segment totaled USD 2,482 million, a 0.6% decrease from the previous year. This decrease was caused primarily by the negative impact from currency exchange rates and the divestiture of the Company's Venezuelan operations. However, organic sales in the light vehicle segment increased due to increased full frame light truck production in North America, as well as increased light truck production in Europe and the Asia Pacific region.

3) Commercial Vehicle segment sales
-Sales in the Company's commercial vehicle segment decreased 16.6% to USD 1,533 million. Negative currency effects, weaker market demand in Brazil, and lost market share due to supply chain inefficiencies all contributed to the decrease in sales. This was partially offset by increased sales in North America from stronger commercial vehicle production.

4) Power Technologies segment sales
-The Company's power technologies segment had sales of USD 1,005 million in the fiscal year ended December 31, 2015, a decrease of 4.5% over the previous year. Stronger market demand of light vehicle engine builds in North America and Europe partially offset losses caused by negative currency exchange effects.

Divested Venezuelan Operations

-In January 2015, the Company completed its divestiture of Venezuelan subsidiary C.A. Danaven to Manufacturing and Logistics Solutions Ltd., an independent and locally operated company. Upon the transaction's closure, the Company provided axle components for Manufacturing and Logistics Solutions' new subsidiary as a Tier 2 supplier. C.A. Danaven had manufacturing and assembly plants in Valencia and Guacara with approximately 540 employees. (From a press release on January 26, 2015)

Major Contracts

Model Engine (if applicable) Components supplied
Ford 2017 "F-250/350/450 Super Duty" - Front and rear driveshafts, Front and rear axles, Charge air coolers, Transmission oil cooler, Diesel fuel coolers, Heat shields, Valve stem seals, Cam covers
2016 "Galaxy" - Engine oil cooler, Transmission oil cooler, Exhaust gaskets, Cylinder head gaskets
2016 "Taurus" - Engine oil cooler, Transmission oil cooler
GM Chevrolet "Corvette Stingray" 6.2L OHV V8 Engine oil coolers, Transmission heat exchangers, Differential heat exchangers
2016 Chevrolet "Camaro" - Engine oil cooler, Transmission oil cooler, Heat shields, Cylinder head gaskets, Secondary gaskets
2016 Opel "Astra" - Engine oil cooler, Heat shields, Secondary gaskets
2016 Chevrolet "Malibu" - Engine oil cooler, Valve stem seals, Heat shields, Cylinder head gaskets
FCA Dodge "Challenger SRT Hellcat" 6.2L supercharged OHV V8 Cylinder head gaskets, Power steering oil cooler
"Ram 1500 EcoDiesel" 3.0L Turbodiesel DOHC V6 Turbo gaskets
2017 Chrysler "Town & Country" - Exhaust gaskets, Heat shields
BMW Mini "Cooper" 1.5L turbocharged DOHC Cylinder head gaskets, Heat shields
2016 "X1" - Cylinder head gaskets, Secondary gaskets, Engine oil cooler, Heat shields
Subaru "WRX" 2.0L turbocharged DOHC H4 Cylinder head gaskets
Volkswagen "Golf" 1.8L turbocharged DOHC Engine oil coolers
2016 "Touran" - Transmission gaskets, Cylinder head gaskets, Secondary gaskets
2016 "Tiguan" - Cylinder head gaskets, Transmission gaskets, Secondary gaskets
Volvo "S60" 2.0L turbocharged DOHC Heat shields
Mercedes-Benz 2016 "GLC-Class" - Cylinder head gaskets, Heat shields, Secondary gaskets
2017 "E-Class" - Cylinder head gaskets, Heat shields, Secondary gaskets
Nissan 2016 "Titan" - Exhaust manifold shields, Front and rear driveshafts
Renault 2016 "Megane" - Engine oil cooler, Cylinder head gaskets, Transmission pump gaskets, Secondary gaskets
Jaguar 2017 "F-Pace" - Front propshaft, Rear axle 
Toyota 2016 "Hilux" - Front and rear driveshafts, Rear differential
MAN VW "Constellation" - Driveshafts
Eicher "2100 8x2, 6x4 Tipper" - Driveshafts


-The Company announced that its Long two-sided chip cooling technology was selected as a finalist for the 2016 Automotive News PACE Awards. The technology improves the heat transfer of power inverters in electric and hybrid vehicles. (From a press release on October 13, 2015)

-The Company announced that its manufacturing facility in Lima, Ohio, U.S. has earned a Masters of Quality Award from Daimler Trucks North America (DTNA) for its commitment to quality, delivery, technology, and cost performance. (From a press release on September 24, 2015)

-The Company announced that its facility in Columbia, Missouri, U.S. has earned Ford Motor Company's Gold World Excellence Award. The facility supplies drive axles for the Ford "Explorer" and Lincoln "MKS". (From a press release on June 1, 2015)

-The Company was awarded the 2015 Automotive News PACE Innovation Partnership Award for its work with Audi in developing partially coated multi-layer steel valve body transmission separator plates. The plates provide improved sealing capabilities, durability, and performance for multi-speed transmissions, CVTs, and DCTs. The Company worked with Audi to develop the technology for transmissions found in the Audi "A4" through "A7", and the Audi "Q5". (From a press release on April 21, 2015)


-The Company expects its sales for the fiscal year ending December 31, 2016 to be between USD 5,800 million and USD 6,000 million. The anticipated decrease will be primarily due to expected further weakening of foreign currencies.

R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Overall 183 176 165
% of Sales 3.0 2.7 2.4

R&D Facilities

-As of December 31, 2015, the Company has eight standalone technical and engineering centers. In addition, the Company has eight more technical and engineering centers housed within manufacturing sites.

-The Company officially inaugurated its 16th global technology center in Cedar Park, Texas, U.S. Currently employing 35 engineers and support staff with capacity for more than 80, the 40,000-square-foot facility is devoted to the engineering and production of the Company's VariGlide technology, a new transmission design that incorporates continuously variable planetary (CVP) technology for use in light-vehicle and off-highway transmissions. VariGlide technology was developed through a strategic licensing relationship between Dana and Fallbrook Technologies Inc. The new facility includes engineering stations, a testing lab with a vehicle dynamometer, prototype assembly, a metallurgical and metrology lab, and a machine shop. (From a press release on June 17, 2015)

R&D Activities

-At Hannover Messe 2015, the Company provided an overview of its work as part of the Auto-Stack CORE network and displayed its contributions, specifically its metallic bipolar plate technology. The Auto-Stack CORE network consists of 14 organizations which include OEMs, automotive suppliers, and research institutions. Established as an initiative to form an industrial core for a fuel-cell industry in Europe, the project was launched in 2013. The Company's metallic bipolar plate technology improves the fuel cell stack's power density and performance, while also reducing its cost. (From a press release on April 13, 2015)

Product Development

Dual Range Disconnect tandem axle technology
-The Company announced its new Spicer AdvanTEK Dual Range Disconnect concept for tandem axles used in Class 8 linehaul applications. The technology enables further engine downspeeding and improves powertrain efficiency from 2-5% over conventional 40k tandem axles currently available. (From a press release on March 26, 2015)

Single-reduction drive axles
-The Company introduced a new family of single-reduction drive axles for North American commercial vehicles that leverages its AdvanTEK technology and other Spicer axle technologies to reduce weight, improve efficiency, and enhance durability. Engineered for 6x2 and 4x2 axle configurations, these axles are lighter than current competing axles and feature a wide selection of ratios from 2.05:1 to 7.17:1. Available in 2016, the new family of drive axles is targeted for Class 7 and Class 8 applications with a 21,000 to 26,000 lb. gross axle weight rating and an 80,000 to 100,000 lb. gross vehicle weight rating. (From a press release on March 26, 2015)

XFE 75W-90 axle lubricant
-The Company announced the launch of its Spicer XFE 75W-90 axle lubricant at the Technology & Maintenance Council's 2015 annual meeting. The lubricant is a new synthetic gear oil which improves fuel economy while having a 500,000-mile change interval. Performance benefits compared to other synthetic axle lubricants include reduced friction and spin loss, lower stabilization temperatures, and more stable operation viscosity. (From a press release on February 16, 2015)

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Light Vehicle 140 129 82
Commercial Vehicle 33 38 40
Off-Highway 18 23 33
Power Technologies 34 30 33
Eliminations and other 35 14 21
Total 260 234 209

Investments outside U.S.

-The Company announced the opening of the Dana Spicer Thailand Gear Plant in Rayong, established to support the light-vehicle market in Thailand and the Asia-Pacific region. The gear manufacturing facility has created 100 new jobs. The 6,450-square-meter facility is the Company's third facility in Rayong and increases the total size of the company's footprint on its Rayong campus to nearly 22,000 square meters. The new facility produces Spicer AdvanTEK hypoid or spiral bevel ring and pinion gear sets. (From a press release on September 15, 2015)