Dana pays $25 million to Toyota to settle Tacoma claim

http://www.reuters.com/article/idUSTRE70B7KZ20110112

Wed, Jan 12 2011
DETROIT (Reuters) - Auto parts manufacturer Dana Holding Corp (DAN.N: Quote, Profile, Research, Stock Buzz) will pay $25 million to Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) as part of a settlement for Tacoma truck frames that rusted out and had to be covered by warranty.
Maumee, Ohio-based Dana sold the plants that manufactured the Tacoma frames as part of a March 2010 asset sale to Metalsa, a subsidiary of the privately held Mexican industrial group, Grupo Proeza.
The auto supplier said its payment to Toyota would result in a $25 million charge to fourth-quarter earnings.
In 2008, Toyota was forced to extend the warranty terms for Tacoma trucks manufactured from 1995 to 2000.
In 2009, the Japanese automaker recalled about 110,000 Tundra pickup trucks in cold weather states because of the risk that exposure to road salt could cause corrosion on part of the frame. The frame on those trucks also was built by Dana.
Toyota was Dana's second-largest auto customer in 2009, the most-recent year for which data is available.
Toyota accounted for up 6 percent of Dana's sales from continuing operations that year, topped only by Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) at 20 percent.
Dana supplies axles, driveshafts and aftermarket parts for autos, commercial trucks and heavy-duty construction equipment.
The company said separately on Wednesday that it expected to post a 10 percent revenue gain in 2011, in line with the growth projected in its global markets.
Preliminary results for 2010 showed Dana had revenue of $6.1 billion and income from continuing operations of about $115 million.

 

Who made the frame for the 2nd Gen trucks?

 

Metalsa?

 

so why do ford frames not rust as bad if there made by the same people???

 

Ford frames are e-coated for rust prevention

 

How do you know they don't? Any numbers?

How many rust-throughs for 2005 Tacoma's vs. 2005 F150's...let's hear 'em!

 

lol 2001+ are not involved in the recall as far as i know.

 

but 2001s still rust out

 

I had an 03 and the dealer volunteered to do a "hammer test" on the frame when I was in for a ball joint recall. They said it was fine.

 

Hino makes the frame for all current Toyota body-on-frame models (Taco, 4Runner, FJ, GX460...)

 

The same Hino that's a division of Toyota??

 

2001-2004 are involved but it's called an "Extended Warranty."
They get the new frame replacement.
A recall goes through other legal matters.
Easier with calling it an "Extended Warranty."
Plus my frame warranty goes to 2016, now that I've had it in the dealership.

My frame (2001) failed and was replaced. Just last January.
Been a year now with no problems and the truck acts like a new truck (except there aren't any loan payments.)

 

Up to 04 is included, 95.5-00 are straight buy backs if there's an issue, 01-04 are frame replacements if perforated, undercoated if no perforation.

 

the toyota ecoat must b different from the ford ecoat

 

Yes. I guess you can say the 2nd gen. Tacoma and 3rd gen. Tundra are real trucks.

Hino has the Tundra on its web site:

 

I just noticed today that my frame has some rust spots on it! This is retarded, the more I take care of this truck-the more it let's me down. WTF

 

I dont think so. I think our trucks still have Dana frames. Now with Tacoma manufactured in Texas it will change but everything made in Cali is most likely Dana.

 

Hino has a plant in Cali that makes Toyota parts.
http://www.hinointl.com/locations.html

Production Capacity:
* Location: Ontario, California
* Manufacturing Plant Size: 226,940 ft2
* Start of production: October 2004
* Products: Toyota components and Hino trucks
* Production capacity: Toyota Components = 200,000 units / year (two shifts)
* Employment: 230 people
* 345,000 units/year (two shifts, normal operation)

 

Don't you wax and polish your frame?