Article
Dana affiliate hit with $27M loss, investigation underway
December 15, 2000
<%=company1%> (Toledo, OH) says on Friday that one of its major Venezuelan interests, Danaven (Valencia, Venezuela), will report a significant loss this year. Dana holds a 49% stake in the axles, frames, and foundry components manufacturer. According to Danaven's majority shareholder, it became apparent during a year-end audit that "there were significant irregularities in the Danaven accounts."
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Dana is working with independent auditors to determine the cause of the loss, but already says it'll record a loss of about $27 million for the fourth quarter. "The news of this loss and its magnitude were a surprise to both partners," says Dana International President Gus Franklin. For more than a decade, he says, Danaven has been one of Dana's most successful operations in South America. The stakeholders have already made significant changes in management and continue the investigation.
Edited by Norman Martin
Managing Editor, AutoCentral.com
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