
Dana has announced it will sell its off-highway business and appoint new leadership as part of a US$200-million cost reduction plan.
R. Bruce McDonald has been named chairman and CEO and will lead the transition, in the wake of James Kamsicka’s retirement as CEO and from the board.
“Jim is an exceptional leader with more than 18 years as a CEO in the industry,” lead independent director Keith Wandell said of the move. “He led Dana through one of the industry’s most challenging periods while successfully building a high-performance culture, enabling a world-class manufacturing company and assembling a portfolio of leading products and technologies.”
Dana’s board said selling the off-highway business will unlock value. The unit provides drive and motion systems for heavy-duty trucks in applications such as agriculture, mining, materials handling, construction and forestry.
The sale will also offer Dana a streamlined go-to-market approach for its light and commercial vehicle customers.
“Dana is committed to a strategy that accelerates value creation and has taken action to flex its cost structure and generate efficiencies by leveraging its core strengths through current market conditions,” McDonald said in a release. “It is clear that further actions are needed, and I am confident that the new incremental cost reductions, paired with the benefits of a potential Off-Highway sale, will enhance shareholder value. Following the Off-Highway business sale, we believe Dana will have an adjusted EBITDA margin and free cash flow margin in excess of current levels.”
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