economical, political and social crises in Colombia, Dana Corporation has recently
invested $US600,000 dollars in its local unit, writes Juan Carlos Vargas.

The American car components supplier has had a presence in Colombia for 25
years through a company called Transejes, whose factory in Bucaramanga, 450
kilometres (320 miles) from Bogota, supplies Spicer axles, CV joints and differentials
to local assemblers.



The investment is to replace obsolete axle dressing machinery, given to Dana
by GM’s Colombian unit Colmotores, with new tooling.

Dana, besides supplying the axles, also ‘dresses’ them with braking and suspension
components and installs them in vehicles on the assembly line.

The Dana ‘micro plant’ in GM’s Colmotores assembly plant can handle 600 vehicles
per day.

This outsourced but in-plant modular subassembly deal means Dana takes responsibility
for local and foreign sourcing of brake discs, callipers, brake pads, shock
absorbers and springs for the Suzuki (Alto, Sprint, Esteem, Jimny and Grand
Vitara), Opel (Corsa) and Isuzu (Rodeo, Luv and Trooper 960) vehicles GM builds
in Colombia.

Dana has offered its in-plant axle outsourcing service to other Colombian assemblers
like Compañía Colombiana Automotriz (Mazda and Mitsubishi) and
Sofasa (Renault and Toyota), but has struck no further deals so far.

To view related research reports, please follow the links

automotive industry in Latin America: Mexico, Brazil and Argentina Forecasts
to 2005

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