Dana Corporation subsidiary, Dana Mauritius and Dongfeng Motor have amended the agreement to develop their 50/50 joint venture, Dongfeng Dana Axle.

Some terms of the original agreement with Dongfeng signed on 10 March, 2005, were renegotiated after Dana filed for reorganisation under Chapter 11 of the United States bankruptcy code in March 2006.

Under the amendments and other agreements signed by both companies - and subject to government approvals, Dana Mauritius will make an initial payment of RMB38.8m (about $US5m) to Dongfeng for a 4% equity interest in the joint venture. Closing of this part of the transaction is expected to be completed by the end of March 2007.

Dana Mauritius will purchase the remaining 46% equity interest after 1 April, 2008, and within three years of receiving government approvals.

Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint venture company will employ approximately 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development centre that will be established.

The technical centre will support Dongfeng Dana Axle's commitment to providing its customers with world-class manufacturing processes and axle components and systems.

Another term of the joint venture agreement between Dana and Dongfeng is Dana licensing commercial vehicle axle technology to Dongfeng Dana Axle for the term of the joint venture.

Dana has seven other joint ventures in the Asia-Pacific region, including two in China.