DETROIT -- Dana Holding Corp.'s sale of its structural products business to Mexico's Metalsa S.A. de C.V. frees the Maumee, Ohio, supplier of a unit that required increasingly large cash investments.
Dana had long sought to minimize its cash demands from that unit by seeking joint ventures with other companies, a former Dana manager said.
Dana said yesterday that it has agreed to sell the unit for up to $150 million. Metalsa also will assume certain liabilities related to the unit. Metalsa will get 10 plants that supply chassis frames and body structural stampings and assemblies for light vehicles and other parts for medium-and heavy-duty vehicles.
"Long term, it is a very good move," says the former manager, who declined to be identified. "It has taken a lot of cash and Dana's customers do not pay upfront."
In a statement, Dana said the deal will allow it to focus on axle, driveshaft, sealing and other products. Dana did not return calls seeking comment.