MAUMEE, Ohio—Longtime Dana Inc. CEO James Kamsickas, who steered the company through the pandemic and the auto industry's move toward electric vehicles, is parting ways with the 120-year-old driveline components supplier.
Kamsickas, 57, has held the role since 2015. The company said in a Nov. 25 statement that he will retire and step down from the board but will remain an adviser through March.
The company, which supplies components to Ford Motor Co., Stellantis and other major auto makers, said supply chain veteran Bruce McDonald was appointed interim CEO and chairman of the board, effective immediately. McDonald is the retired former chairman and CEO of interior parts supplier Adient, which spun off from Johnson Controls Inc. in 2016.
Dana also confirmed plans to divest its off-highway business, which provides drive and motion systems for heavy-duty vehicles. Keith Wandell, Dana's lead independent director, said that the company "is taking action to streamline the business, unlock the value of its off-highway business, and further reduce costs."
No timeline for the sale has been disclosed. Goldman Sachs & Co. and Morgan Stanley & Co. were retained to handle the sale.
McDonald, a board member since 2014, will lead cost-cutting measures aimed at saving $200 million annually by 2026. It was not immediately clear if or how many job cuts could be in the works.
These efforts focus on matching spending with EV market demand and reducing administrative and engineering costs to handle delays in EV adoption, the company said.
Sunrise Buick GMC is sold to Jim Keras Automotive, representing Kerrigan Advisors 81st franchise in the Southern region sold since 2023.
In a statement, McDonald said that these measures, along with the sale of the Off-Highway unit, will enhance shareholder value and provide Dana with an adjusted earnings margin and free cash flow margin exceeding current levels.
"Dana is differentiated by leading technology innovation and a track record of continuous improvement. My conviction in our businesses, the team and the opportunities to capitalize on the EV transition over the long term remain strong," McDonald said in the Nov. 25 statement. "I look forward to stepping into my new role as CEO at such an important time for Dana and will work diligently alongside the Board and management team to deliver on these actions and drive value for Dana shareholders."
Kamsickas, in the company statement, said: "I am proud of the work the Dana team has done over the past decade to grow revenues and successfully enhance the technology to serve all mobility markets no matter what type of propulsion they may use. It has been an honor to lead this talented global team during that time and I am confident the company is well positioned for the future."
The company has engaged a search firm to find a permanent CEO and has framed McDonald's role as interim.
This week's announcements came after a challenging few years for the company based near Toledo, Ohio. Global uncertainty and elevated vehicle inventory levels have slowed production, while demand for internal combustion, hybrid and EVs has weakened. Dana's stock has tumbled over the past three years, falling from a peak of $27.90 in June 2021 to $9.55 as of Nov. 27, 2024.
The supplier's net income dropped to $4 million in the third quarter of 2023, down from $19 million in the same period last year. Sales fell to $2.48 billion, a $190 million decline year over year.
"We see further weakening demand for ICE, hybrid, and electric vehicles across most mobility markets," Kamsickas said in the company's Oct. 30 earnings call. "Global uncertainty and higher vehicle inventory levels have driven down production in our off-highway segment."
Dana ranks No. 28 on Automotive News' list of the top 100 global suppliers, with worldwide parts sales to automakers of $10.55 billion in 2023.
