MAUMEE, Ohio -- Dana Holding Corp. has reached a settlement with Toyota Motor Engineering & Manufacturing North America Inc. for warranty claims related to frames produced by the company's former Structural Products business.
Under terms of the agreement, Dana will make a one-time payment of $25 million to Toyota in connection with corrosion on frames produced for certain Tacoma pickup trucks that were subject to a customer support program initiated by Toyota in 2008.
Dana substantially divested its Structural Products business, including the plants that manufactured the Tacoma frames, in March 2010.
The payment will result in a $25 million charge to Dana's fourth-quarter 2010 earnings.
