TOLEDO, Ohio — Dana Corp. says it will sell its trailer axle and suspension manufacturing business to Hendrickson USA, L.L.C., a subsidiary of the Boler Company.

The sale includes Dana’s heavy duty manufacturing facilities in Barrie, Ont. as well as Lugoff, S.C., and and Wuxi, China, for about $38 million in cash. The buyer will also assume limited liabilities related to the business, Dana says.

Only trailer manufacturing assets in Barrie and Wuxi will be sold.

Truck and auto parts giant Dana Corp.’s is currently in a full-scale restructuring effort after its American operations filed for bankruptcy protection from creditors in March.

As part of the divestiture process, an opportunity for
competitive bids could be allowed by Bankruptcy Court

At the time Dana blamed skyrocketing raw materials and energy costs as well as declining production at slumping U.S. vehicle manufacturers for the move.

The latest trailer axle transactions are subject to the approval of the US Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana’s Chapter 11 reorganization proceedings.

As a standard part of the divestiture process, Dana has filed a motion with the Bankruptcy Court seeking approval of procedures that will provide an opportunity for competitive bids on the trailer axle assets before the sale is approved by the Court. Dana expects the bidding process to be completed and the sale to close in the fourth quarter of 2006.

Dana Heavy Vehicle Products President Nick Stanage said the asset sale will support the company’s efforts to focus more intently on its core commercial vehicle drivetrain product lines.

“This divestiture will benefit our Commercial Vehicle group by concentrating its resources on our core products and competencies — namely drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles,” he said. In a press release.

“We view this transaction as a strategic opportunity for both Dana and the buyer,” he added. “This is a good business that has the opportunity to become even better by teaming with a company that considers trailer products a core pursuit and has the resources to further develop this group’s capabilities to address this market segment.””

Dana’s trailer products business employs approximately 180 people in Lugoff and Barrie.

About 90 positions in Barrie will be eliminated when the assets are transferred, Dana said.

In conjunction with the asset purchase agreements, Bendix Spicer Foundation Brake LLC, a joint venture in which Dana has an interest, has agreed to continue to supply Bendix brake systems to Hendrickson.