Dana Holding said it had completed the sale of its Venezuelan operations, CA Danaven, to Manufacturing and Logistics Solutions, an independent and locally operated company.
CA Danaven provides drivetrain products to global automotive vehicle manufacturers in Venezuela and has manufacturing and assembly facilities in Valencia and Guacara. Its 2014 sales were US$110m.
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Manufacturing and Logistics Solutions will operate the business and license the use of the Danaven name. Under various supply and other agreements, Dana will provide components and technical support to the company as a tier two supplier transacting business outside of Venezuela.
“This business decision was made to improve Dana shareholder value by reducing uncertainty associated with foreign currency and other regulatory pressures,” said president and chief executive officer Roger Wood.
“The management team in Venezuela will remain intact. They have a deep knowledge of the business and local market along with the necessary experience and expertise to meet the high standards of their customers in the region.”
Terms of the agreement were not disclosed. Dana expects net income in the fourth quarter of 2014 to take a hit of $77m due to the sale but its 2014 adjusted EBITDA will not be affected. Nor are its other operations in South America affected.
Ford last week said, in a regulatory filing, it would take an US$800m pre-tax hit in results for the fourth quarter of 2014 due to the currency woes in Venezuela and exclude its operations there from future operating results though it would continue to book income when paid for parts or receiving dividends.
