(cnhubei.com) Dongfeng Automobile Co Ltd (DFAC) signed agreement with Dana, a US corporation, to form a joint-venture company to produce commercial vehicle axles on March 10, 2005.

The 50/50 joint venture will be called Dongfeng Dana Axle Co. Ltd. and it is the largest Sino-US joint-venture axle company in Asia.

The signing ceremony took place in Xiangfan of central China’s Hubei Province with local and regional government and business development officials in attendance. 

The capital involving in the agreement reaches 2.2 billion Yuan (US$266 million).

A research and development center will be established in Wuhan, capital of Hubei.

Dongfeng Dana Axle will supply axles, driveshafts and other products for commercial vehicles.

“We are pleased to reach this milestone with Dongfeng,” said Dana Chairman and CEO Mike Burns.  “This Chinese joint venture will continue to supply the axle needs of Dongfeng Motors while serving as a world-class, globally competitive medium- and heavy-axle supply base for Dongfeng and Dana.”

“The leadership, product expertise, commitment to new technology, and people of Dana and Dongfeng make this an exciting opportunity for both companies,” said Dongfeng Motor Co. Chairman and CEO Miao Wei. “Most importantly, Dongfeng Dana Axle will benefit our customer base”, according to Dana online.

Dana is a world leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies. The company is based in Toledo, Ohio, and reported sales of $9.1 billion in 2004.

Located in Xiangfan, DFAC is a high-tech based enterprise, mainly engaging in the development, design, manufacture and sales of Dongfeng series light-duty automobiles and Dongfeng Cummins diesel engine.