Getrag and Volvo Cars invest more than C$190 million in AWD facility

Getrag and Volvo Cars invest

more than C$190 million in AWD facility

GOTHENBURG, SWEDEN -- Volvo Car Corporation has reached a preliminary agreement with the German transmission company GETRAG to produce all-wheel-drive (AWD) system components at the Volvo Cars plant in Köping, Sweden. The plan is to invest more than 1 billion SEK (C$190 million) in a new, jointly owned company.

The new company, which has not yet been named, will begin operating during the second half of 2003. Getrag/Dana Holding Company, a joint venture of Getrag and Dana Corporation of the U.S., will own 60 per cent of the new company and Volvo Car Corporation the remaining 40 per cent.

The plan is to develop the Köping plant into a complete company within the field of AWD technology. The company will market its services as an independent supplier to the automotive industry, including companies within the Ford group.

“This technology has excellent potential and we expect to be able to expand,” says Tobias Hagenmeyer, CEO of the GETRAG Corporate Group of Cologne, Germany. “Four-wheel drive vehicles are increasing their share of the world auto market,” adds Hagenmeyer.

“The operations in Köping will be streamlined to create a centre for the technological development, purchasing, production and marketing of AWD systems and components. The Köping plant will also continue to produce chassis components,” says Curt Germundsson, Senior Vice President of Manufacturing at Volvo Cars.

The expanded capability will help Volvo Cars meet the growing demand for the all-wheel-drive feature in Canada, says Larry Futers, national marketing manager of Volvo Cars of Canada Ltd. “With steadily increasing volumes of vehicles like the XC70 and the S60 AWD, the new S60 R and V70 R performance cars, and the very successful XC90, we see all-wheel-drive representing up to half of our future volume,” says Futers.

The deal is subject to the completion of final contracts and European Union regulatory approval.

For further information, please contact:

Christer Gustafsson at Public Affairs, Volvo Car Corporation +46 31 596525

Friedemann Strasser, President & CEO GETRAG Corp. USA +1 828 428 1102

Tony Shelbourn, Vice President Corporate Relations, Dana Corp. +1 419 535 4661

Karin Burgmer, Corporate Communications, GETRAG FORD Transmissions,

+49 221 5897 2010

Information about stakeholders.

GETRAG is privately owned and located in Untergruppenbach in Germany and was founded in 1935 by Hermann Hagenmeyer. GETRAG is now located in 16 sites around the world (Germany, Italy, France, UK, USA and India) and produces Manual Transmissions for Passenger Cars, SUVs, Vans, Motorcycles and Light Trucks and Automated Manual Transmissions (ASG®) for the Automotive Industry. The company revenues reached the amount of EUR 1.9 billion 2002 and employs more than 9.000 employees.

Together with the US Dana Corporation, a major supplier to the automotive industry, GETRAG has set up the Getrag/Dana Holding Company, which will be the principal owner of the new company in Köping.

DANA Corporation is a publicly traded Company at the NYSE (Symbol: DCN) and a global leader in the design, engineering, and manufacturing of value added products and systems for automotive, commercial, and off highway vehicle manufacturers and their related aftermarket. The company employs more than 60.000 people worldwide. Founded in 1904 and based in Toledo, Ohio, DANA operates hundreds of Technology, manufacturing and customer service facilities in 34 countries. The company reported sales of USD 10.3 billion in 2001.

GETRAG FORD Transmissions is a 50:50 joint venture between Ford and GETRAG. The company specializes in the development and production of manual and auto shift manual transmissions. GETRAG FORD Transmissions is based in Cologne and has production sites in Cologne, Bordeaux and Halewood.

Volvo Cars in Köping produces some 150,000 manual transmissions a year, together with chassis components for the rear-wheel and front-wheel drive units, spring struts and around 100,000 basic axles and angle gears for AWD.

At the present time, the plant in Köping supplies manual transmissions and AWD and chassis components to Volvo Cars. Some 30 per cent of Volvo Cars’ transmissions are sourced from Köping. Volvo Cars in Köping has 1232 employees.