Dana Opens First Wholly Owned Plant in China

Dana Holding Corp. has begun constructing its 15th factory in China—and its first wholly owned enterprise there—to make powertrain components for all-wheel-drive vehicles.

The 160 million-yuan ($23 million) plant in Chongqing is expected to begin production at the end of 2018. Dana says the facility will make Spicer SmartConnect devices for awd systems used in cars and SUV/crossovers. Dana says the factory’s first customer will be Changan Ford Automobile Co., which also is based in Chongqing.

When Dana established local production in 1991, China accounted for only 2% of global auto sales. Last year the country built about 30% of the world’s vehicles.

SUV/crossovers represent the fastest-growing segment of the Chinese passenger car market. Dana predicts the new Chongqing facility will double sales of driveline systems within in seven years.