Dana Incorporated Announces Executive Transition and Strategic Actions to Drive Value Creation

Dana Incorporated, a leading provider of propulsion and energy-management solutions, recently disclosed a series of noteworthy changes in its executive leadership and strategic direction. In a Form 8-K filing submitted to the Securities and Exchange Commission on November 25, 2024, Dana announced the appointment of R. Bruce McDonald as the President and Chief Executive Officer (CEO) and Chairman of the Board of Directors, effective immediately. This appointment marks the departure of James K. Kamsickas from his roles as CEO and Board member.

R. Bruce McDonald, aged 64, brings a wealth of experience to Dana, having served on the Board since 2014. His background includes roles such as chairman of the board of directors of Andrew Peller Limited and chief executive officer of Adient plc. Notably, in response to McDonald’s appointment as CEO and Chairman, Keith E. Wandell will assume the role of Chair of the Nominating and Corporate Governance Committee.

Regarding compensation arrangements, McDonald has entered into an employment agreement with Dana, outlining a base salary of $1.3 million and the grant of restricted stock units. The agreement, detailed in the filing, also specifies the terms of McDonald’s service and termination protections.

In parallel, Dana announced its initiation of a $200 million cost reduction plan to enhance long-term profitability and cash flow generation. The company plans to streamline its business by selling its Off-Highway segment, facilitated by financial advisors Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC. The Off-Highway business, catering to heavy-duty vehicle markets, will enable Dana to focus on its core light and commercial vehicle offerings while reducing leverage and potentially returning capital to shareholders.

McDonald expressed confidence in Dana’s direction, emphasizing the importance of leveraging core strengths and adapting to market dynamics. Furthermore, the company reaffirmed its full-year 2024 guidance ranges for sales, Adjusted EBITDA, and free cash flow, as outlined in the recent press release furnished as Exhibit 99.1 of the filing.

Dana’s proactive measures to drive value creation and operational efficiency in the changing mobility landscape reflect the company’s commitment to delivering long-term shareholder value. The transition in leadership, strategic actions, and continued focus on innovation position Dana for future growth opportunities and sustained performance in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Dana’s 8K filing here.

Dana Company Profile

Dana Incorporated, together with its subsidiaries, provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. The company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies.