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Dana Buys Rights To S.American Axle Business

Dana Holding Corp. said it completed a deal for the rights to distribute truck and bus steering axles now made by a company in South America.

MAUMEE, Ohio (AP) -- Dana Holding Corp. said Tuesday it completed a deal for the rights to distribute truck and bus steering axles now made by a company in South America.

The Maumee, Ohio-based auto parts supplier said it bought the rights from SIFCO S.A., adding the commercial vehicle axles to its product offering in South America and giving it a full line of commercial driveline products there.

"This agreement builds on Dana's deep manufacturing and engineering expertise in this product segment and immediately positions Dana as the leading provider of full system driveline solutions to our customers," Mark Wallace, president of the Dana Heavy Vehicle Products Group, said in a statement.

Dana said the deal is part of its emerging markets strategy that included a recent joint venture investment announcement in China.

Under the SIFCO deal, Dana got distribution rights for commercial vehicle steering axle systems and now has responsibility for marketing, sales, engineering and assembly. The company will serve Agrale, Ford, Iveco, MAN, Mercedes-Benz, Scania and Volvo and other customers in the region.

Dana said it invested $150 million to get the rights to the business, which is expected to generate $350 million in annual revenue.