Ford Supplier Dana May Dump Off-Highway Unit

Dana Inc is one of the most well-known entities in the automotive supplier world, having been in business for 120 years now. Dana also counts Ford as its biggest customer, as The Blue Oval accounts for 20 percent of its overall business, and it currently supplies a variety of driveline parts for a large number of Blue Oval models – including the Ford Maverick, Ford Bronco, Ford Escape, Lincoln Nautilus, and Lincoln Corsair. Now, however, Dana is reportedly looking to offload one portion of its business amid slowing demand for certain parts, it seems.

According to Bloomberg, Dana is currently talking to advisers as it contemplates selling its off-highway unit, which builds and sells drive and motion systems for heavy-duty vehicles in sectors including agriculture, forestry, construction, and mining. In 2023, Dana’s off-highway division accounted for 30 percent of the company’s overall business with $3.2 billion in revenue, along with an EBIT (earnings before interest, taxes, depreciation, and amortization) of $465 million.

The process is reportedly in its early stages and is far from being a certainty, but Dana believes it could fetch a few billion for its off-highway business, and it would also potentially make the company more attractive to other automotive suppliers with its main focus then centered around passenger cars and trucks. Throughout 2024 thus far, Dana has faced its fair share of financial challenges amid numerous difficulties, which have resulted in a 24 percent decline in share value, along with $2.9 billion in debt.

Now, Dana is focusing on trimming costs and improving efficiency to right the proverbial ship amid softening demand for its products. The company won’t be announcing its third-quarter earnings until the end of October, but the American institution – which was founded way back in 1904 – ranked 28 on the list of top 100 automotive suppliers last year after racking up sales of $10.5 billion across the entire globe in 2023.