Dana Holding To Pay Toyota $25 Million For Faulty Frames
MAUMEE, Ohio (AP) — Dana Holding Corp. said Wednesday it will pay $25 million as part of a settlement with a subsidiary of the automaker Toyota Motor Corp. for warranty claims related to frames produced by Dana's former structural products business.
Dana plans to take a fourth-quarter charge as a result. The settlement was related to corrosion on the frames, made for certain Tacoma pickup trucks, the company said.
Dana said it "substantially divested" its structural parts business including the plant that manufactured the Tacoma frames in March 2010.
The Toyota subsidiary is Toyota Motor Engineering & Manufacturing North America Inc.
Shares of Dana closed at $18.27 on Tuesday.