Dana Holding Corp. reports it has executed a “strategic transaction” with Brazilian forger SIFCO S/A, allowing it to distribute commercial vehicle front and rear axles, driveshafts, and suspension components with its product offerings in South America. Adding those products makes it a full-service supplier of commercial driveline systems in the region, Dana said.
"This agreement builds on Dana's deep manufacturing and engineering expertise in this product segment and immediately positions Dana as the leading provider of full system driveline solutions to our customers, allowing us to develop total vehicle optimized solutions in South America," stated Mark Wallace, president of the Dana Heavy Vehicle Products Group.
Dana, which produces automotive and commercial vehicle axles and driveshafts, sealing and thermal-management products, and aftermarket parts, said it paid $150 million to gain the rights to SIFCO’s commercial vehicle product line. It further indicated it expects to generate $350 million annually in revenues from the transaction. The deal would raise Dana's total annual revenue in South America to over $1 billion.
In addition to the distribution rights in the region, Dana gains responsibilities for all customer relationships, including marketing, sales, engineering, and assembly with customers including Agrale, Ford, Iveco, MAN, Mercedes Benz, Scania, and Volvo.
Dana said the deal is consistent with its “emerging market strategy,” responds to strong regional demand for a complete driveline product selection, and reinforces its commitment to support customers in the global truck market.
SIFCO produces axles and other forged components at two plants in Brazil.
