Document B88Q0ObGxkrGgLmd44JaYopmJ

Dana Corporation - History Page 6 of 12 C.V. Joints In 1959 Dana acquired Rzeppa, a manufacturer of constant velocity (C-V) joints to the off-highw market. Two years later, while working with Ford on a small car (the Cardinal), Dana people designed and patented a C-V joint suitable for small cars. But this was before the time of the oil crisis, and small cars were small business in the United States. Ford abandoned the project, ani Dana stopped development of their C-V Joint. But small cars grew hugely fashionable in Europe and South America, and the C.V. joint industr integral to small car technology, just grew and grew. Although too late to make a significant imp; in Europe, Dana established a South American C.V. manufacturing joint venture with GKN. The partnership proved enormously successful, and became one of Dana South America's most profitable operations. Divisionalization and the aftermarket When Spicer had moved to Toledo in 1928, annual sales had been $10 million. Charles Dana, ii a fit of optimism, said that he could see sales reaching as high as $12 or 13 million a year. In fai in 1964, he saw company sales top $364 million. Dana was growing big. 0 It was not all good news. Sheer size threatened Dana's ability to provide the top quality service prided itself upon, while Dana people were being stifled by the unwieldy, increasingly bureaucra corporate structure. On January 1,1964, Dana reorganized into seven separately managed divisions. Each division was responsible for engineering, manufacturing and selling their own product line! Five of the seven divisions represented Dana's traditional original equipment manufacturing bas -- but there were also an International Division and the Perfect Circle Corporation. Dana's acquisitions of Perfect Circle in 1963 and Victor Gaskets in 1966 demonstrated Dana's strategy of diversification within the industry Dana knew best. Both Perfect Circle and Victor wei well known distributors of replacement parts to the aftermarket, and both had extensive oversea operations. The two companies also immediately gave Dana access to the $4.5 billion replacement parts market, where Dana had traditionally lacked the distribution skills and network necessary to mal a real impact. In November 1964, Dana amalgamated its distribution businesses into the Dana Parts Company. Main lines included Monmouth clutches, Triplex pistons, Perfect Circle piston rings, Perfect Circle engine and chassis parts, Allied engine and chassis parts, and Spicer products (such as transmissions, transfer cases, PTOs and propeller shafts). With more than 100 salespeople in the field, the Dana Parts Company used marketing and sale programs to promote its products, with considerable success. By 1967, the aftermarket already accounted for 18 percent of Dana's sales. The divisions The 1964 divisionalization split Dana into seven parallel operations. Along with the International Division and Perfect Circle Corporation, five manufacturing divisions were created - Spicer, Salisbury, Parish, Atlas and T&G. Spicer was responsible for truck transmissions, transfer cases, propeller shafts, Power Take Ofl and C-V and universal joints. Salisbury made clutches, gear boxes, slip differentials, and front a rear axles. Parish was the world's largest producer of heat-treated heavy-duty frames. Atlas ma' forgings, connecting rods, cam shafts and other automotive parts. T&G (Transmission & Gear), acquired by Dana in 1961, designed and manufactured automatic and mechanical transmission http://www.dana.com/overview/history/history2.shtm 11/18/2002