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Dana Corporation - History Page 2 of 12 Dana's management style and plan for the future. Dana had much to be proud of. The company's products were first class, their quality was high and their people were dedicated. But Dana also had some problems, a legacy of its centralized structure. Too much power and information was concentrated in the hands of a few company leaders. Communications between people were poor, and the decision-making process had become creakingly slow. Little effort was put into building relationships with investment banks or the financial press. Advertising and corporate identity programs were undervalued. Purse-strings were tight, and growth opportunities were being missed, both in the United States and abroad. Most alarmingly, Dana relied too heavily on original equipment for the North American car mark a high-volume, low-margin series of non-proprietary products that anyone could make. That was fine in the boom that followed the Korean War, because there was plenty of work for everyone. But the question was, what would happen in a downturn? From Spicer to Dana The acquisition of Auburn Clutch in 1946 created a formidable line-up for Spicer. Formidable, bi confusing. Because Spicer, Salisbury, Parish, Brown-Lipe, Sheldon and Auburn were all tradenames owned by the Spicer Corporation, the distinction between Spicer the brand and Spicer tf corporation was becoming blurred. The company therefore decided to rename itself, and in recognition of his 32 years of service, Charles Dana's family name was chosen. The Spicer name did not disappear. It remained where Clarence Spicer would have wanted it on the products that he had designed and made famous, still manufactured to the quality he hac insisted on. Jack Marlin John E. (Jack) Martin was appointed Executive Vice President of the Dana Corporation on Marc 27,1952. Formerly President of the Firestone Steel Products Company of Akron Ohio, Martin w a charismatic and confident figure who saw huge potential in the Dana Corporation. In 1954 he succeeded R.E. Carpenter as Dana President, and as Chairman of the Board Charles Dana visited Toledo less and less often over the years, Martin became the effective leader of the Dan Corporation. Martin recognized the need for future management, hiring young people and giving them room t grow. He was also dedicated to developing new, proprietary products that offered customers a material advantage, then making the most out of those products. Under his stewardship, Dana grew into a world leading company with interests in distribution, in non-automotive markets, and overseas. Martin was appointed Dana Chairman in 1967, a position he held until his retirement i 1972. The "modern" corporation In 1923, Alfred Sloan was appointed President of a sprawling General Motors. Where William C Durant had given GM its diversity and size, Sloan proceeded to give it shape and purpose. He divisionalized operations, then decentralized power. Armed with his creeds "a car for every purs and purpose" and "give a man a clearcut job and let him do it," he built General Motors into the world's leading car company -- and in the process created the template for the "modern" corporation. Even as General Motors flourished, Ford seemed headed for ruin. In the early 1940s, Ford was overtaken in sales by Chrysler, and was losing millions of dollars a month. All power was concentrated in Henry Ford's hands; all decision making went through his office. Only one set o figures existed for the entire operation, making serious cost control impossible. Worse, as Henn http://www.dana.com/overview/history/history2.shtm 11/18/2002