Dana reaches settlement with Toyota on warranty claims

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Dana Holding Corp. announced that it has reached a settlement with Toyota Motor Engineering & Manufacturing North America 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. The payment will result in a $25 million charge to Dana’s fourth-quarter 2010 earnings.

Dana substantially divested its Structural Products business, including the plants that manufactured the Tacoma frames, in March 2010.