Document K6BLLr1nkY0yVzQ2pJVNgKVLo

Dana Corporation - History [DANA HOME OVERVIEW NEWS .* TEUHNULUOY t HIM , rlh,UH,Vi>HW,l"i . * ,* INVESTORS CAREERS Page 1 of 14 CONIRCT Us! |search Here oj Introduction Section 1 Section 2 Section 3 History SECTION 1: Laying the Foundation SCENE SETTER We're at the brink of a new millennium, and looking into the future can be disorienting. So much has changed in just this century: what changes will the future bring? In the last few decades alone, advances in information technology have revolutionized work, just as eighty years ago Henty Ford revolutionized manufacturing. These advances have created a global economy, whi has transformed the way that we look at our markets and loosened the once-rigid hierarchies of business and social convention. But if you think we're in the middle of extraordinary and unprecedented change now, think back the cusp of the twentieth century, when the internal combustion engine was just one of the man; ways that the accepted practices of life were being turned upside down. Communication was being transformed by improvements to the telephone and the wireless, Sound could be captured by the phonograph, and memories saved by Kodak's first hand earner The first public motion picture was shown in Paris in 1895, the same year as the first safety raze was produced, revolutionizing the world's grooming habits. And that was not all. A.P. Warner, founder of Warner Electrics and one of the founders of Dana, liked to tell the story a lecture he once attended. The lecturer, a learned Harvard mathematician, proved conclusively on his blackboard, through a combination of diagrams and equations, that flight in a heavier-tha air machine was a mathematical impossibility. Shortly afterwards, Warner became only the sixth American to fly such a machine, The unimaginable can become the everyday, almost overnight, and we have to be ready for it, as ou founders were. 1st vignette The motor car and power transmission In 1902, at Cornell University's Sibley College, a young stude of Mechanical Engineering named Clarence Winfred Spicer assigned a project that had intrigued some of the finest scientific minds in history -10 design a self-propelled carriage or automobile. Plans for such a vehicle had been drawn by b( Leonardo da Vinci and Isaac Newton, while the First road testi steam vehicle was built by Louis Cugnot in the 1760s. But it was In 1886 that the modem automobile was bom, as Gottleib Daimler developed a practical internal-combustion engine, and his German contemporary Kart Benz inlegrated s http://www.dana.com/overview/history/historyl.shtm DANA-0410 3/19/2004 Dana Corporation - History Page 2 of 14 engine with a chassis. Their advances took time to cross the Atlantic, and it was not until 1893 that Frank and Chartas Duryea built and road-tested the motorized carriage which is recognized as the first American automobile. The automobile was a remarkable, world-changing breakthrough, and because it was so revolutionary, it created an extraordinary number of opportunities for people with bright Ideas. Power transmission, for example, had been pretty straightforward with horse-drawn carnages. The horse pulled, and the wheels turned. With the internal combustion engine, however, power transmission became a complex engineering problem. Eariy cars used sprockets and chains to turn the rear axle, but these were unsightly and noisy at high speeds. Worse, they were difficult to lubricate and broke frequently. At the turn of the century, several French designers experimented with a propeller shaft, and in 1901 the Autocar company built the Type VIII, the first American propeiler-shaft-driven car. In each of these designs, though, the propeller shaft was fixed in place with crude joints that seize* up, and shattered easily. They offered little or no improvement over sprockets and chains. Clarence Spicer Clarence Spicer had been fascinated by mechanics since the day his dairy-farmer father had bought cooling machinery for <he farm creamery and told Clarence to look after it. Clarence Spicer's lifelong competitiveness and dedication to quality was also instilled early. One year his father won an award for the hlghest-quality butter at a World's Fair. The next year he was beaten into second place in another butter competition -- by Clarence. Clarence Spioer left the Illinois farm to study at Alfred University, then In 1899 entered Cornell's Sibley College to study engineering. There, under the tutelage of Dean Thurston, he worked on hl$ design for an automobile and became increasingly with the issue of power transmission. Dissatisfied with sprockets and chains, Spicer determined to use a propeller shaft, which he attached to the engine and rear axle with specially designed `universal* joints. Spicer's universal joints were a major engineering breakthrough. They were n* just easy on the eye and ear - they were proof against dust and dirt, and were easy to lubricate When Spicer showed his drawings to Dean Thurston, Thurston recognized the originality and commercial viability of Ihe universal joint design, and advised his pupil to file for a patent, grants in May 1903. The design was duly published in a patent journal, where it caught the admiring attention of several automobile manufacturers. These people contacted Spicer and asked him t< supply the joints, or license their manufacture. With this firm assurance of the potential of his brainchild, Spicer left Cornell in the Spring of 190 and went to Plainfield, New Jersey, to begin manufacture of his universal joint. Within two years he had a lengthy list of prestigious clients, including Buick, Wayne, Mack, Olds. Stevens-Duryet American Motor Car, Diamond T and E.R. Thomas. The new universal joints were so good that soon they soon became the Industry standard for power transmission. Spioer was rightfully proud that his joints were used at both ends of the market. The best and most expensive American care regularly used his joints, as did the good low-priced cars, demonstrating that Spicer joints were the best money could buy, yet were still competitively priced. Plainfield, and the Seventh Day Baptists. As a dedicated Seventh Day Baptist, Clarence Spicer determined to 3et up his business in an environment where people shared his conviction that Saturday should be a day of rest. PlalnAel* New Jersey, was therefore an obvious choice. It was a stronghold of Seventh Day Baptists, and http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 3 of 14 was situated near the heart of the early automotive industry. Besides, Spicer already had relatiu in Plainfield, connected with the Potter Printing Press Company. At first, he contracted Potter to manufacture his universal joints, until Potter received a huge ord for printing presses and could no longer help. Spicer then rented a comer of their plant, hired three employees, and began manufacturing the joints himself. In 1905, as orders kept coming ir he incorporated the Spicer Universal Joint Manufacturing Company. The history of the universal joint Jerome Cardan, an Italian mathematician bom in 1501, is credited with discovering the principle the universal joint, a coupling that allows angular motion in all directions, and the transmission c rotary motion. The first practical application of his idea, however, was made by Robert Hooke, a seventeenth-century English experimental philosopher. Hooke's design was so efficient and reliable that Clarence Spicer remained faithful to its essential principles when he designed his o joint more than two hundred years later. In its earliest days, the joint had limited use. In 1675, Isaac Newton contrived a universal joint oi which to mount his telescope. Other early applications included compass and gun mountings, d spindles and some agricutajral machinery- However, it was not until the advent of the internal combustion engine, the growth of the motor car industry, and Spicer's patent that the universal joint truly came of age. The World War I Liberty Truck The advances In mechanized transport that had been achieved by the first World War meant thr armies could be supplied and moved more quickly than ever before. Vet the variety of trucks being used created a logistical nightmare. Slaff had to stock every conceivable size of bolt, nut and screw, and be familiar with the workings of all the different engines. In 1917, Clarence Spicer was one of a group of engineers and industry leaders summoned to Washington to solve the problem by designing the best possible standardized truck. At first the group was reticent. The engineers were accustomed to being rivals, and were reluctant to share their secrets with each other; but they soon got into the spirit, and competed to see who could contribute the most. The result was the Liberty Truck, rugged, easy to maintain and equipped w interchangeable parts. 2nd Vignette The early transport Industry That Clarence Spicer's universal joint was in demand baton was even manufactured testified to both the quality of its design and the healthy state of the automotive industry in 1904, After their 6low start, American automobile manufacturers had caught up with and even passed their European counterparts. The car proved perfect for the Unite States; Americans loved new technology, and they loved to travel. As a growing, thriving country, mobility was a way of life, not a luxury. Also, the oil fields discovered at Spindletoi Texas, in 1901, provided an enormous source of cheap fuel. Maybe the greatest difference between Europe and America, however, was the attitude of car makers to their work and their customers. In Europe, motoring was not viewed as a means of mass transport so much as an expensive hobby. Cars were custom-bulk; there were few economies of scale and costs were high. Because cars ware expensive, the market for them remained small. By contrast, American manufacturers were systematic, specialized and eager to improve their http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 4 of 14 product. They did not make their components in-house, but contracted out business to part3 suppliers, from whom they demanded the highest standards. Henry Leland of Cadillac was quality's standard-bearer. He demanded identical, interchangeable parts from his suppliers, whose tolerances were measured to the hundred-thousandth of an inch. But Leland's creed did not stop there. Each employee checked every component as it was received to ensure it was defect free, creating the first quality-assurance program in the automotive industry. Second, American manufacturers perceived their market differently from Europeans. Because their market was potentially huge, they reckoned that cars could be sold cheaply, and profit mac on volume. In 1900, Ransom E. Olds commissioned his Jefferson Avenue staff to produce a runabout car (the first Oldsmobile) that he sold for $625, making his return by mass production. Later, Henry Ford introduced the moving assembly line at Highfield Road, slashing car product!* time, and enabling him to offer a high class car at unprecedentedly low cost, interchangeable parts, mass production and the assembly line would allow America to dominate world automobil production for decades to come. Perfect Circle Established by Charles Teetor in Hagerstown, in 1895, as the Railway Cycle Manufacturing Company, Perfect Circle was one of many companies that started senring a non-automotive transport industry before realizing the future was with automobiles. Studebaker, for example, we a world-renowned builder of horse carriages before it ever designed a car. Olds made steam engines. The Duryea brothers, builders of America's first car, made bicycles, while Henry Lelam made bicycle gears. Charles Teetor began in similar fashion, designing and manufacturing a pedal-powered vehicle use on railroad tracks. The Teetor cycle was an immediate success, and was soon being export around the world. By 1907, the company was making a wide range of products, including piston cylinders and piston rings. In 1918, confident of the future of its piston-ring business, the Teetor-Hartley Motor Company $t off all other areas of the company and renamed itself the Indiana Piston Ring Company. In 1921 it introduced the brand name Perfect Circle, and in 1924, It changed its company name once again, this time to Perfect Circle. In 1963, Perfect Circle became part of the Dana family. Dana Distribution Europe Dana Distribution Europe was founded in London in 1889 as a cycle dealership called Brown Brothers. The business grew briskly, and soon the company was distributing cycle parts in Gres Britain, Spain, France and Portugal. In 1898, Brown Brothers opened a separata department to supply parts for cars, motorcycles and related equipment. Later it became Involved in the aviatic business, supplying parts to pioneer aviator Colonel S.F. Cody end setting up a factory to produ precision aircraft components. After World War I, Brown Brothers merged with Scottish based James Thomson & Sons, and opened branches in many leading British cities, supplying a wide range of motor, electrical and hardware goods. In 1964, the company determined to focus on its core business, which was no1 supplying the motor trade, and gradually closed its main branches in favor of smaller, concentrated motor suppliers. In 1973, Dana took an interest in Brown Brothers, and in 1981, Dana acquired all of its outstanding shares. Spicer Europe Founded in Wolverhampton, England, In 1902, as Thomas Turners Co, Spicer Europe began t building bicycles, tricycles and horseless carriages, including the Tumer-Melsse Steam Car. In 1907, the company began to design and manufacture patrol-engine vehicles. After World War I, the company established a reputation as a components suppler. http://www.dana.com/ovemiew/history/histoty 1 .shtm 3/19/2004 Dana Corporation - History Page 5 of 14 In 1949. Turner began manufacture of an all-purpose diesel-engine tractor, the Yeoman of England which achieved worldwide sales, and led the company to set up manufacturing faciUtie; In many countries around the world. In 1972, Dana took a 30 percent stake In the company. The partnership proved such a success that in 1976 Dana bought the company outright. 3rd vignette The Founding Fathers While Leland, OWs and Ford were transforming the way automobiles were made, and Clarence Spicer was redefining power transmission, many future members of the Dana family were also making dramatic contributions to the automotive industry. It was an era of extraordinary Inventiveness. In 1882, when A.P. Warner (founder of Warner Electric and one of the Dana family's most prolific patent-holders) was just 12-years old, he told his grandfather he'd like to be an inventor. 'Arthur, you are too late,* his grandfather replied. `Everything to be invented is Invented, and there is no use your wasting time in trying to make something new,' Rarely can an observation have been so wrong. There was a frenzy of Invention at the turn of tf twentieth century as new power sources, improved communications technology, better process* and machining all added to the heady mix of progress. Inspired by Thomas Edison, `the Wizard Menlo Park,' inventors had become celebrities. The automobile, at first no more than an engine and chair on wheels, offered great potential to these ingenious minds. Tremendous competition amongst rival inventors meant that everything was up for improvement. The internal combustion engine had not even become the dominant power source. The first recognized land speed record, set in 1898 by an electric car (at 39.24 mph), was beaten over the next eight years by electric, steam and gas engines. And the earlies: cars offered little of today's standard equipment - no headlights, ignition, windshield, instrument or even a roof. All these had to be thought of, designed, patented, manufactured and sold. No one exemplified that spirit of inventiveness better than A.T. Brown, arguably the most prolific and versatile inventor in the Dana family. While working with L.C. Smith, a gun company, Browr designed a safety catch for guns, a breech loading gun, an electric firearm and the double-lock bolt for the Smith Gun. Later, working tor the Smith Premier Typewriter Company, he perfected double-keyboard typewriter. In 1892 he invented a pneumatic bicycle tire, and later sold the patents to the English Dunlop brothers. As well as being a hugely successful Inventor, Brown was president of several companies. In 1895, with dose friend Charles E. Upe, (inventor of a milling machine and the first man to perfe* an invention for sewing brooms), Brown oonceived an Idea for a two-speed gear for bicycles. TF gear proved too expensive for commercial success, but the Brown-Lipe partnership continued. I 1904 Brown-Lipe sold a progressive type motor car transmission to the H. H. Franklin Company Syracuse. Two years later E.R. Thomas Company bought Brown-Lipe's first selective type auto transmission, while the first Brown-Lipe clutch was shipped to the Grabowsky Power Wagon Company In 1911. Paying the highest-ever per-share price for a Syracuse business, Spicer acquired Brown-Upe ir 1929, and moved the business to Toledo In 1931. Victor John H. Victor, co-founder of Victor Manufacturing and Gasket Company, applied for many patents in his inventive career, induding one for an improved golf club and another for a tiling cabinet. But It was in establishing the gasket company with his brother Joseph in 1909 that he found his greatest success. Victor's copper-asbestos gaskets provided longer life and better sealing than their competitors, and soon the company became the leading supplier of gaskets t< the automotive industry. http://www.dana.com/overview/hi8tory/histofyl.shtrn 3/19/2004 Dana Corporation - History Page 6 of 14 In 1866 Victor joined the Dane family of companies, as part of Dana's strategy of diversifying int the aftermarket, and In 1993 merged with German-based gasket manufacturer Reinz to become Victor-Reinz. Weatherliesd Albert Weatherhead (founder of Weatherhead & Co, holder of 75 patents) once heard the chief engineer for Studebaker say, "if you want to sell the automotive industry, you must develop an article of better quality, at less cost." The Harvard engineering graduate took the advice to heart. Returning from World War I service Franoe as a combat pilot, he bought a small shop in Cleveland and began designing and manufacturing automotive products. His first design for an automobile-engine priming cup was successful enough. His second, for a radiator drain cock, was a breakthrough that became standard equipment for practically every car made in the United States. As with all Dana people, quality of product was not enough by itself. Weatherhead insisted on delivering his products on time and in exact quantities to his clients, who included Chevrolet an( Ford. This mix of inventiveness and dedication served the company well, and Weatherhead's product line and client list expanded steadily. By the time Weatherhead joined the Dana family ii 1977, it had become a major supplier of components used in braking, steering, air conditioning, fuel, cooling and lubricating systems, 4th vignette New York to Parle Race On February 12th, 1908,250,000 New Yorkers crowded into the Times Square district to wltnes the start of the New York to Paris Race, an unprecedented test of automotive reliability and endurance. The race, co-sponsored by newspapers Le Matin and The New York Times, would take the competing care across North America to San Francisco, across Alaska, across Japan, and from Vladivostok to Paris. It would also prove that the car had come of age as a means of worldwide transport. There was a sub-plot, as well. As with Cadillac's entry in the Dewar Trophy the same year, the New York-to-Parls race was symbolic of the Transatlantic struggle to lead th automotive industry. An American car. an Italian car, a German car, and three French care lined up to fight for the honors. The European entries were built specially for the race, but the American car, a Thomas Flyer, was from regular stock, built with parts provided by no fewer than four members of the Dana family. Salisbury provided wheels, Brown-Lipe the transmission and Parish the frame, whi forgings were provided by the General Drop Forge company. The first leg of the race from New York to San Francisco took the crews through appalling weat) conditions. The roads, bad enough at the best of times, were so blanketed in snow, or thick with mud that few believed any of the cars would reach the first checkpoint, let alone Paris. But five ( the six contestants did make it to San Francisco. The Thomas Flyer, leading the way, took a boi to Alaska, but the wealher conditions there were even more severe, and no progress at all was possible. By the time the American team had returned to San Francisco, the other teams had decided to bypass Alaska and had already shipped ahead to Japan. The teams started even again in Vladivostok (except for the German Protos, which had been awarded a 30 day penalty for shipping their car by train from Idaho to Seattle). French driver St. Chaffray, told by the Marquis De Dion to retire from the race, was so desperate to complete the course that he cornered the gasoline supply in Vladivostok, and tried to barter fuel for a seat on the Thomas. Rejecting the unfair pressure, the enterprising Thomas crew called on American residents, who provided a sufficient supply from their power launches. The Germans gained the lead on the road, and kept it ail the way to Paris, but because of their http://www .dana.com/overview/histoiy/history 1 .shtm 3/19/2004 Dana Corporation - History Page 7 of 14 30-day penalty they were 26 days behind the Thomas Flyer, which arrived in Paris on July 30, winner of the race. Dana's integral involvement with the racing industry had begun. The Perfect Circle bend In 1909, Carl Graham Fisher, a flamboyant entrepreneur and car salesman, opened a 2.5-mile, rectangular track some five miles north of Indianapolis. The first races held there were hampers by accidents and poor attendance, so the track was resurfaced and in 1911a huge purse was offered for a one-day extravaganza - which proved to be the first Indianapolis 500 Mile Race. The Light Inspection Car Company band (later Perfect Circle), consisting of the Teetor family members and company employees, paraded past the grandstand just before the inaugural race Perfect Circle's connection with the event did not end there, as many great drivers enjoyed tremendous success using Perfect Circle piston lings. A.J. Foyt, the first driver to win four Indy 500s, used Perfect Circle rings, as did Al Unser Jr. when he took the checkered flag In 1994, driving for Team Penske. Leland and the Dewar Trophy In 1908, Henry Leland and Cadillac demonstrated to Europe that American manufacturing practices had left their European rivals behind. Three Cadillac cars were shipped over to Englar to stake a claim for the Dewar Trophy, an annual RAC award for the greatest achievement in th> automotive world. Cadillac mechanics disassembled the three cars, allowed independent judges to thoroughly mix up the parts, then recreated three cars from the pile. When the cars were reassembled, they we filled with gasoline and oil. To the crowd's astonishment, two of the three started at the first pull. The third took two goes. The three cars were then run full out on an oval track for 500 miles, ea< completing the course at an average speed of 34 miles an hour, at 30 miles per gallon, out-racir the Europeans. Clarence Spicer, himself dedicated to quality control, was a huge admirer of Leland. In a brief history of Spicer Corporation written in 1925, Clarence Spicer refers to him as "Pop* Leland, am singles him out for praise, thanking him in particular for a half-hour-long personalized chat in which Leland "emphasized the Importance from a manufacturing standpoint of making every operation and every piece commercially right the first time". 5th Vignette Charles A. Dana In 1914, Clarence Spicer learned one of harshest lessons that can be taught in business - his universal joints had become so popular that his company was pushed to the brink of bankruptcy. Over-hurried expansion had increased the cost of production, sales and delivery, and, because Spicer joints had become the industry standard, many competitors had simply resorted to imitation. Spicer's only defense had been lengthy, expensive and inconclusive law-suits. Near desperation, he traveled to New York to put his case to the investment bank, Spencer Trask & Co. Spicer's was far from a unique story. Some 1,500 automotive companies had already failed by 1914, and Mr. Trask did not fancy betting his money that Spicer's company wouldn't be the next. He did, however, see enough promise in the company to hand the papers to a young lawyer called Charles Dana. Dana saw enough promise to visit South Plainfield - where, lore has it, he found Clarence Spicer's desk piled high with papers. "What are those?" asked Dana. http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 8 of 14 "New orders,1 answered Spicer. `And where are your bills?' For answer Spioer opened a drawer and showed Dana a bare handful of invoices. The huge plk of orders next to the small stack of bills was all the encouragement Dana needed to become involved In the business. In exchange fora controlling interest In the company, Charles Dana lent $25,000 to Spicer, ther dedicated himself to leading the company through its hard time. Dana was no engineer, but he was a great salesman. Convinced that Spicer's universal Joints were without equal, he proceed* to share his opinion with the leaders of the automotive world, with dramatic success. Dana also knew how to motivate people and win their loyalty. He set up a range of benefits for Spicer people, including a group-insurance plan, an employee-stock-purchase plan, and an in house publication, The Drive-Shaft. In addition, plant and equipment was invested in, cafeteria facilities were improved, houses were built and sold cheaply to Spicer employees, food was bought in bulk and sold at cost, and a course of seven lectures in Modem Production Methods was offered at no cost to management, foremen and supervisors. With Charles Dana in charge, and with a surge in demand in the automotive industry because o World War I, Spicer was soon back in the black. In 1916, with the help of Charles Merrill of Merr Lynch, the company was re-organized as the Spicer Manufacturing Corporation. The new corporation boomed and Dana took advantage by acquiring a series of complementary automotive suppliers, including Chadwick Engine Company, Salisbury Axle, Sheldon Axle, Paris Pressed Steel, Snead & Co, Almetal and Brown-Upe. In the twenties, Dana also led the company overseas, expanding a licensing agreements and acquiring interests in Hardy Spicer in England, Societe Spicer Glaenzer in France and Hayes Wheel and Forging in Canada. Lawyer, rancher, soldier The only son of a successful banker, Charles Dana was an active man, with wide interests. Afte studying liberal arts at Columbia University, Dana entered Columbia Law School, then practiced law in New York. He was deeply interested in politics, running campaigns for Teddy Roosevelt, and himself being elected three times as Republican member to the Assembly of the New York Legislature. By 1908, at the age of 27, Dana was already president of two companies, the New York & New Jersey Water Company and the New Jersey Suburban Water Company. Dana also served for eleven years as a farrier in the New York National Guard, and was an exp marksman. He made a habit of going each year to the Corralitos Ranch in Chihuahua, Mexico, t work as a cowhand at roundup and branding time. Drlveshaft The Driveshaft, Spicer's in-house magazine for the South Plainfield workforce, arrived in Januai 1917 with the following explanation of its purpose: 'Each month it is planned to issue this sheet keep us informed as to what those in other departments are doing, social doings, the Company* plans, and information that otherwise it would be difficult to pass around, and in general to add t the fellowship, good will, comfort and pleasure of those connected with this Company.* As the company expanded with acquisitions and new plants, the Driveshaft kept Spicer people i the know. The magazine also undertook a campaign to promote safety in the workplace, which paid off handsomely a3 the number of injuries decreased. The Driveshaft was succeeded by the Drive Line, and then by the Dana Digest Today more than twenty in-house magazines are published by Dana people. http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 9 of 14 Clarence Spicer Even after Charles Dana became Managing Director of the Spicer Corporation, Clarence Spicer remained intimately involved with the company he had founded. Dedicated to quality, he once turned down an offer to leave Dana and join General Motors because he wanted to ensure the leadership of the Spicer name. Ha kept tabs on the competition by installing their equipment in cars and driving his family thousands of miles across the country, stopping every two hundred miles or so to check how the rival equipment was holding up. As the company's Chief Engineer, Clarence Spicer also worked on many new products. He invented a machine for balancing propeller shafts, and another for producing welded tubing. He also designed a rail-road generator drive and a safety clutch for a generator drive. He was a member of both the American Society of Mechanical Engineers and the Engineers Society of Detroit, and treasurer and president of the Society of Automotive Engineers. Clarence Spicer died In Miami in November, 1939. A tribute from the Society of Automotive Engineers acclaimed his life as *a beacon of example and inspiration in the engineering profession.' 6th vignette Expansion, Detroit and Toledo Despite a stump in demand following the end of World War I, by 1920 it was dearths automobtl was going to be bigger than anyone had forecast. In 1909, North American vehicle sales had totaled just 123,990. By 1917, they had rocketed to 1,745,792. And by 1929, the number had nearly reached 4 million. The problem for the Dana family was not in sales, but in producing enough to meet demand. New plants at Pottstown and Reading were not enough, and Spicer Corporation looked to consolidate its manufacturing operations. At the same time, the company needed to deal with another issue that was becoming more and more pressing. Most Spicer customers were no k>n( on the East Coast. If Spicer wanted to keep its reputation for responsive service, it needed to move its manufacturing facilities. The harsh truth was, New Jersey no longer meant much in the automotive world Detroit had taken over. Why Detroit should have become so dominant in an industry founded in Europe and originally based on the East Coast is not easy to answer. Michigan had abundant raw materials, shipyard and foundries, but it also had the right people at the right time, which was fortunate. Legend hat for example, that Henry Leland had originally determined to settle in Chicago, but when he arriv there he was greeted with `pistol shots and flying brickbats,* so he bought a ticket on the first tn out - which just happened to take him to Detroit. Along with Leland, R.E. Olds and Henry Ford were already established in the Detroit area by 1900. William C. Durant acquired Buick of Flint, Michigan, in 1904, and proceeded to build General Motors. Because of the incredible success of these pioneers, suppliers and associated companies gravitated towards Michigan and Ohio. When Walter Chrysler reorganized Maxwell Motor Company as Chrysler in the 1920s, and built it into one of the Big Three, Detroit's domination of the industry was complete. It was not surprising then that Spicer Corporation determined tcj relocate. Toledo was preferred Detroit partly because an overnight train sendee would allow Charles Dana to continue living on the East Coast and still visit the company on a regular basis. In 1928, therefore, land was acquired on Bennett Road in Toledo, and a new plant was erected. In early 1929 manufacturing equipment was moved from South Plainfield. Within two years Brown-Lipe and Salisbury Axles had also relocated to the Toledo plant. http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 10 of 14 Relocation was a typically smooth Dana operation. Forty families were taken on a special train over the Pennsylvania railroad. On the train, it was business as usual. Even the mail was distributed to the proper department officials. At Toledo, a fleet of automobiles from the Reuben Realty Company met Spicer people and their families off the train, and took them on a tour of th town, during which many of them selected their new homes Henry Ford Between 1910 and 1920, the United States automotive Industry was transformed from a thriving cottage Industry into a major industrial power. Remarkably, one man was largely responsible foi this achievement. With a determination to bring the automobile within the reach of every hard-working American, Henry Ford used the moving assembly line to accelerate production and reduce costs. His methods, and the phenomenal success of the Model T, speak for themselves. In 1908, when th Model T was introduced, Ford's sales were 10,202. By 1916, they had risen to 734,8t1. Henry Ford also had an enormously beneficial impact on American industrial workers, when in 1914 when he offered to pay an unprecedented $5 for a day's labor (a little over double the minimum wage). The offer created such havoc outside Ford's factories that water canons were used to turn away the crowds. Ideas - What are they worth Realizing that 'incentive was a good stimulus to constructive thinking,' in 1924 Dana assured in house inventors they would receive a proper reward for any commercially valuable innovations, addition. Dana offered potential Inventors the services of the Engineering and Experimental Department, and promised to cover all of their associated expenses. `It is ideas that control markets, not bricks, mortar, machinery or even money,* read an editorial the Driveshafl. "It is ideas that are going to insure the future of this Company and those who depend upon it for their livelihood, therefore the Management invites you to think with them for c mutual benefit, to the end that our advancement in the Universal Joint art may keep well ahead any other manufacturer in the same line." Looking after number one When Spicer moved In 1928 from South Plainfield to its new offices In Toledo, Gladys Kummer was their first new employee - a stenographer for the temporary offices in the Secor Hotel. She was given Workcard Number 1. The man at the employment agency which recommended me I the job warned me for the job warned that Spicer was just a little outfit,* she said, 'but I took the job anyway.' The first office was erected on the company's Bennett Road site, and rest-room facilities were rented from a neighbor. As the company grew, it hired a local woman to arrange food, setting uf planks on sawhorses on her home for dining tables. Those meals were unforgettable," said Mn Kummer. "I can remember the huge platters of pork chops, potatoes, and bowls of gravy she served us for 35 cents a parson. It was wonderful." Spicer production facilities started its move from New Jersey in 1929 and completed its arrival ti Toledo in 1931. Remarkably, throughout the Depression, the plant was naver closed down. As f Gladys Kummer, she stayed with the company for the next 40 years, until she retired. By the tirr she retired workcard No. 1, the company had grown Into a multinational organization, boasting annual sales of more than $500 million. 7th vignette Sales, promotions and advertising http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 11 of 14 From the automotive industry's earliest days, sales were split into two broad categories - Origin Equipment Manufacture (OEM) and the replacement sales market, or aftermarket. Many early accessories, like shock absorbers, spring mounted bumpers and rear view mirrors would soon become standard, but before they did, they needed to be sold to a discriminating public. Good marketing and advertising was essential. The Indiana Piston Ring Company quickly recognized the benefits of advertising. Its Perfect Cir< piston ring was so successful that in 1924 the company re-christened itself Perfect Circle. It advertised in the Saturday Evening Post, and published The Regulator, a quarterly tabloid for th automotive trade through which It notified the dealers of its new products. Finally, it sponsored nationally broadcast radio musical show, and eventually advertised on television. Victor Gasket recognized the value of endorsements to advertising. In 1927, the company ran a impressive campaign, highlighting some of the successes the company had enjoyed that year. Charles Lindbergh crossed the Atlantic in a Ryan monoplane equipped with a Wright Whirlwind engine and Victor gaskets. Three Victor equipped Stutz cars finished first, second and third in a 150 mile Stock Car race at the Atlantic City Speedway, establishing a feast of new records. As r that were not enough, three Victor equipped Studebakers set endurance, speed and distance marks of more than a mile a minute for 16 days and nights. The award for the Dana family's most imaginative publicity campaign, though, would surely go t< A.P. Warner. Warner, a long-time advocate of advertising. Invented a device called a "cut-meter for measuring the speed of industrial machinery. He soon realized that it could easily be adaptei to the automobile, and his new `speedometer* proved enormously popular among car-ownere anxious to record their exploits, or perhaps to stay within the limits of the law. Resolving to sell directly to the public, he went to A,D. Lasker, the famed president of Lord and Thomas. Lasker (who. proving that advertising pays, built a $75 million fortune from his agency) and Warner got along from the start. The two men often vi$!ted automobile manufacturers together. Warner attributed much of his oompany's success to Lasker's advertising, and also remarked that Lasker spent money with both hands but that it was relumed multiplied many timi But it was Warner himself who devised the most colorful promotion of his speedometer. He built giant, gold-plated speedometer, mounted it on the rear of a car, then sent it on a tour of the country. Teddy Roosevelt was so enchanted with the car that he got in with the driver and rode around outside the White House. Warner's speedometer even got the law changed. At the time, New York had a 10-mph speed limit that was completely ignored. So, Warner contacted the pre and then got himself arrested by driving past the police at 15 mph - while he was being overtak by trucks and cars going twice his speed. All the state's newspapers carried the story, and spee limits were soon raised. NAPA The National Automotive Parts Association (NAPA), is far and away America's leading replacement parts organization. It is also one of Dana's foremost customers. Remarkably, the Dana family played a major role in NAPA's foundation. As the motor industry flourished in the 1910s, leading companies like Ford, Buick, Chevrolet, Willys and Maxwell recognized that their customers deserved fast, quality service when their ca broke down. They therefore established networks of dealers around the country, and distributed their parts to them. For companies like Spicer, this arrangement was unsatisfactory. Spicer was supplying all these leading companies, so their parts were often available through several dealerships in the same city. Yet no single dealer held a full stock of Spicer parts, and some independent shops didn't carry Spicer parts at all. In 1919, engine manufacturer Continental addressed this problem by forming their own network dealers, appointing one distributor In each large distribution center. Spicer. Brown-Lipe and http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 12 of 14 Timken Detroit all recognized the merit of Continental's scheme, and promptly appointed the same agents, known as 'parts stations.' By 1924, there were parts stations In 31 cities, and the manufacturers recognized they needed an organization to oversee the national distribution of parts, and NAPA was consequently formed on April 17,1925. Relnz Founded by Hugo Relnz in Berlin in 1920, Reinz's greatest breakthrough came in 1928 when th company patented a new cylinder head gasket. Called the Reinz Special, It consisted of a wove metal core surrounded by asbestos fibers, and was so advanced that in the 1930s nearly all European manufacturers used it, even the great car racing companies, Audi Union and Merced! Even though the Relnz Special was in production for sixty years, Reinz did not rest on Its laurel; In 1942, when material supplies were squeezed by the war, Reinz developed an asbestos-tree gasket, Deuma. After the war, Relnz moved headquarters to Neu-Ulm, where the company continued to grow, and in 1993 Reinz joined the Dana family. Merged with Victor, Victor-Reinz was the largest manufacturer of flat gaskets in the world. 8th vignette Dana'e People In 1929, the United States produced 4,5 million cars. In 193 production slumped to 1.1 million. After the boom years of t 1920s, the Wall Street Crash and the Depression devastate industry. By the time the Depression bottomed Out in 1932, huge numbers of workers had been laid off, and wages in tl automotive industry had dropped by 35%. The workers wer hurting, and in an effort to protect themselves they formed unions that quickly grew powerful. ki place of the friendly relations established at Spicer during the boom years, there grew an atmosphere of confrontation. The workers had lost faith in their management, and Charles Dana, while he loved working with people one-to-one, mistrusted the new adversarial organizations. On the morning of Friday. February 23,1934, matters came to head in Toledo. Alter delays in recognizing an United Auto Workers (UAW) contract. 4,000 workers went on strike from Spicer, Logan, Bingham and Electric Auto-lite factories. Over 2,000 Spicer workers participated in the walk-out, and, despite the sub-zero temperatures, they set up a picket line outside the plant. Charles Dana was at the plant early, chatting to the pickets, sending out coffee and carrying out buckets of coal to keep their fires going. On Sunday, Dana held conferences with business leaders and bankers, then gathered the principal management and union members together at the Commodore Perry Hotel, where they laid out the basis for agreement. That night, Dana took a train to Washington, where he confers with NRA leaders and officials from the American Federation of Labor, before returning to Toled on Tuesday for more conferences. When negotiations seemed headed tor stalemate, Dana insisted on another conference on Wednesday, and they finally reached a settlement. The terms were laid before the workers that evening, and the union's business agent, Thomas Ramsey, urged the workers to accept the pact. They did, almost unanimously, by a standing vot The workers, having grown fond of 'Charley* Dana, called for him to speak. *1 felt It was a privilege to work to provide jobs for you,' he said. There is only one thing really worth while abc an organization and that is its men and women. Stone and mortar, bricks and machinery can be duplicated, but the workers cannot.* At the end of his speech, Charles Dana was cheered. But the strike left an indelible mark on hin http://www.dana.com/overview/history/history 1 .shtm 3/19/2004 Dana Corporation - History Page 13 of 14 For years afterwards tie remained deeply mistrustful of worker's organizations, often refusing to negotiate with them at all. Wix Established in 1939 by Jack Wicks and Paul G. Crawshaw to manufacture replacement filters K Inside costly filter cases, Wix started with a flourish, able to sell all the filters it could make into a automotive market that boomed briefly after the Depression. Then World War II broke out, and supplies of essential materials were cut, threatening Wlx's survival. In response, Wix people showed determination and resourcefulness by developing ne> filter cartridge materials. A small supply of steel was still necessary, so Wix people went out anc collected empty oil cans from service stations, from which they stamped parts. Again, when knitting companies were no longer able to supply knitted sock material, Wix people found discarded machines in a junk yard, cleaned them up, and used them until the end of the war. Tf perseverance paid off, and by the end of the war Wix was even supplying filters to American forces in the Pacific. Wix went from strength to strength, in 1955, Kingsley Humbert and Paul Francois perfected the design for a spin-on oil filter conceived and patented by Jack Wicks. The filter revolutionized the industry, and became standard equipment In new cars. Spicer Clutch In 193S, Seth and James Atwood, owners of the Atwood Vacuum Machine Company, acquired the rights to several clutch designs invented by C.A. and W.V. Thelander. W.V. Thelander also joined the company and completed the designs, and production began In 1938 when an old plat was purchased in Auburn, Indiana. Demand proved so great that a new plant was built, ready in time for war emergency. The plant not only supplied all the clutches for the Willys and Ford Jeeps, it supplied clutches for International Harvester's M-5 Prime Mover and for Allis-Chalmers track-laying tractors. In 1947, Aubum Clutch joined the Dana family. Later, Brown-lipe and Monmouth clutches were consolidated into the company, and Auburn was renamed the Spicer Clutch Division, 9th vignette World War H World War II was a conflict of unprecedented movement - with faster, more flexible machinery covering vaster distances and more diverse terrain than ever before. Yet almost every type of vehicle used by the Allies in combat service, on land, on sea or in the air, was equipped in som< way with one or more Spicer products. That Spicer people were able to contribute so greatly to the war effort testified to their dedication, and the preparations they had been making as far bac as the early 1930s. Because of their heavy truck experience, for example, Spicer people worked with the army on developing equipment that would be suitable, with minimum change, for military use. Most famously, though, Spicer was intimately involved in the design and manufacture of the Jec the light reconnaissance car that was the envy of the Axis powers. Robust, capable of fast transportation of men and military equipment, the Jeep gave the Allied armies a significant advantage in mobility. Spicer not only designed the four-wheel drive and axle, but also supplied the parts in huge volume. Other companies in the Dana family contributed massively to the war effort as well. Salisbury, Victor and Perfect Circle products were everywhere. Parish manufactured heavy frames, while Weatherhead supplied artillery shells and parts for the B29 bombers. The General Drop Forge < provided equipment for the B-29, as well 83 the Aircobra, the Wildcat and others. http.V/www.dana.com/overview/history/Wstoryl.shtm 3/19/2004 Dana Corporation - History Page 14 of 14 Spicer's enormous contribution during this era was recognized by the armed services, in particular, America's two senior armed forces jointly awarded Spicer the Army-Navy *. a coveted recognition of exceptional achievement. Presented to Spicer's Toledo plant in Decembr 1942 tor 'great work in the production of war equipment,' the award consisted of a flag to be flo1 above the plant and a lapel pin for every person who worked there. By the end of the war, every plant in the Spicer family flew the award. Spicer Axle The Salisbury Wheel Company was founded in Jamestown, New York, in 1901 when C.W. Salisbury, a key-maker and mender of umbrellas, patented an automobile wheel, then pooled hi life savings with two colleagues, Scott Penfield and E.D. Sherman, and started manufacture. Salisbury's first customer was the E.R. Thomas company, maker of the Thomas Flyer. In 1905, the company started manufacturing front axles. Two years later rear axles were added to Its product line. Acquired by Spicer in 1919, Salisbury was moved to Toledo in 1929, closer to the center of the automotive industry. Salisbury axles became standard equipment in thousands of automotive vehicles. At the outbreak of World War II the light, Salisbury's rugged axles proved ideal for the Jeep. The Jeep proved so popular that in 1945 Salisbury had to build a new plant in Fort Wayne Indiana. In 1970, the Salisbury Axle group was renamed the Spicer Axie Division. Parish Organized in 1905, the Parish Pressed Steel Company pioneered heat-treatment to produce automobile frames strong enough to stand up to the shock and abuse of the unpaved roads. Founded by Neff E. Parish and John E. Sullivan, Parish's first customer was Stevens Duryea. Ir 1910, Parish switched from making car frames to making heavy duty truck frames, receiving orders from Mack, Autocar and the White Motor Co. Parish contributed greatly to the war effort in both World Wars. In World War II, in particular, the company produced parts for gun carriages, tanks and aircraft as well as parts for field kitchens. The company was awarded the Army-Navy Burgee for Excellence In War Production, the Militai Police Guidon and the National Security Award. Roquet Monopole French company Roquet Monopole was founded in 1920 by Swiss manufacturer Denys Guem At first known as 'Le segment Monopole," the company specialized in piston rings, before expanding its product line to include cast-iron and aluminum pistons. Production was greatly, reduced during the war, not In small part because the Poissy factory was heavily bombed in 19* Igp nlJEaaa Terms of Use <9 2002 Dana Corporation Roquet Monopole, which joined the Dana family in 1978, was not the only European member o! the Dana family to suffer damage in the conflict. Brown Brothers branches in Birmingham, Hull, Uveipool, Southampton and Bristol all were severely bombed, while the main London warehous received a direct hit. Introduction Section 1: Laving the Foundation Section 2: Comino of Aoe Section 3: Moving Into the Future http://www.dana.com/overview/history/historyl.shtm 3/19/2004