US: Toyota's $25m frame claim from Dana
Dana Holding has reached a settlement with Toyota Motor Engineering & Manufacturing North Americafor warranty claims related to frames (chassis) produced by the company's former structural products business.
Under terms of the agreement, Dana will make a one-time payment of US$25m to Toyota in connection with corrosion on frames produced for some Tacoma pickup trucks that were subject to a customer support programme initiated by Toyota in 2008. The payment will result in a $25 million charge to Dana's fourth-quarter 2010 earnings.
Dana substantially divested its structural products business, including the plants that manufactured the Tacoma frames, in March 2010.