One of the international giants powering the world’s biggest automotive components companies is Dana Incorporated. It specializes in supplying transportation companies drivetrains, sealing, and thermal management technology. It also aims to be the global technology leader in efficient power conveyance, and energy management solutions that allow its customers to achieve their sustainability objectives. While the company’s stock market performance has been volatile for the past two years, Dana Incorporated is ramping up on diversifying its products. This can only mean growth for the company.
Dana Incorporated and their Business Units
Dana chiefly supplies traditional and electrified light vehicle driveline technologies. This pertains to drivetrain components and systems for passenger vehicles, SUVs, vans, crossovers, and trucks. The company works with other manufacturers to deliver high-quality axles, Spicer® propshafts, Variglide® planetary variator technology, and other driveline components.
It is also a major provider of commercial vehicle driveline technologies. This includes drivetrain and tire pressure management systems, and genuine service parts for medium- to heavy-duty commercial vehicles. Its innovative propshafts increase fuel efficiency and decrease weight, effectively reducing maintenance and total ownership costs.
Dana also provides off-highway drive and motion technologies through the Spicer® drivetrain systems and other solutions for different off-highway customers. This includes customers in agriculture, construction, material handling, and underground mining. Its strategically located technology centers bring global expertise to the local level with customized service to individual requirements.
Lastly, Dana delivers power technologies through Victor Reinz sealing solutions and Long thermal management technologies. This eases fuel consumption and emission, which consequently makes for higher vehicle durability and performance.
Dana Incorporated’s biggest customers are Ford, FCA, Renault-Nissan, and PACCAR, and is serving mostly North America. It has more product diversity than its peers, with offerings such as Brevini motion systems, Variglide technology, Dana 44 and Dana 60 brand axles, Glaser sealing parts, GWB industrial driveshafts, and Tru-Cool Transmission Coolers.
Dana Electrified is also leading the technological shift towards vehicle electrification through drivetrain and propulsion systems. Having all these products to offer to a prosperous transportation industry allows Dana Incorporated to grow as a powerhouse among other illustrious automotive companies.
Acquisitions and Partnerships
Dana Incorporated has been creating strategic acquisitions and partnerships that complement its current portfolio. In March 2018, Dana announced that it has acquired GKN, a British company in the field of automotive and aerospace components. “We believe this transaction will result in a much stronger Dana, both strategically and financially, by taking advantage of the combined company’s global scale, technology leadership, strong balance sheet, and attractive cash flow profile.” This is according to Dana Executive Vice President and CFO, Jonathan Collins.
In May 2018, Dana Incorporated partnered with Famic Technologies, Inc. to create the Dana Catalogue in Automation Studio. This is a design and simulation software which allows users to design system circuits using Brevini products. Simulations such as this help technical and commercial modeling, which can then be validated by actual performance calculations. This is a tool widely used by Dana’s OEM (original equipment manufacturer) customers. Giulio Ornella, Dana’s Director of Innovation and Advanced Engineering said, “Powerful system design and simulation software solutions help accelerate the delivery of complex products to market by condensing the development, integration, and testing cycles.”
In June 2018, Dana Incorporated acquired the Drive Systems segment of the Oerlikon Group. It is the worldwide provider of high-precision gears, planetary hub drives for wheeled and tracked vehicles, and other controls and software supporting vehicle electrification. In the same month, Dana announced a joint-venture partnership with TM4 Inc., a subsidiary of Hydro-Quebec. TM4 will be Dana’s supplier for electric motors, power inverters, and control systems for Dana’s electric vehicles. This partnership further cements Dana Incorporated as the only supplier with full e-Drive design, engineering, and manufacturing abilities.
Third Quarter Earnings Call Business Impact by Dana President and CEO James Kamsickas
Indeed, Dana Incorporated is on its way up. During its Q3 earnings call on October 29, 2018, it revealed that its third-quarter revenue totals to $2 billion, a 15% increase in sales in 2018. Its net income for the quarter is $95 million, a 25% increase over the prior year.
Dana intends to power through with its strategy by focusing on inorganic growth opportunities like the acquisition of the Oerlikon Group and TM4. Both game-changing acquisitions will further strengthen Dana Incorporated’s e-propulsion portfolio.
CEO James Kamsickas said, “We are confident that these transactions will deliver significant long-term value by accelerating our commitment to vehicle electrification and strengthening the technology portfolio for each of our end markets.” Kamsickas also owes the company’s growth in the past three years to exceptional customer service and product innovation.
Dana’s strengths lie in the balance between the light-duty and heavy-duty markets, which include commercial vehicles and off-highway vehicles. It has also identified its key regions, global outlook, and a key driver for each strength. For light vehicles, Dana has been chosen to supply rear drive units for all Ford Edge platform versions in North America, Asia, and Europe. As for heavy-duty vehicles, Dana will be providing axles for the John Deere-acquired Wirtgen’s next-generation soil compactors.
The medium-duty truck market has also been identified as a vast opportunity for Dana Incorporated for vehicle electrification. Cities and other urban areas all over the world now need electric vehicles. This means electric public transportation is in demand and becoming more common every year. Many cities across the globe are choosing to mobilize its citizens via electric buses and cars for sustainability. This is a significant opportunity for Dana Incorporated.
Reshaping the Future of Automotive Companies Transportation
In April 2018, Dana Incorporated revealed its strategy and technologies for electrification in construction and off-highway markets. Dana enables OEMs to accelerate their hybrid and electric vehicle deployment programs, starting with the integration of its drivetrain solutions into vehicles and internal combustion engines. This gives integrates electric drive technologies and smooth transitions into a single package to drive maximum performance. It now offers market-ready electric-drive systems for current vehicles and support for future hybrid and electric vehicles. It also provides exhaustive support for electrification across all vehicle markets.
Dana Incorporated may have had volatile stock performance in the past two years. But all its product diversity and compatibility, and its initiatives in partnerships all void Dana’s previous hard losses. Moreover, with the addition of President and CEO James Kamsickas, investor, shareholder, and customer confidence are now stronger than before. Dana Incorporated is certainly driving the transportation innovations that bring the future to the present.