Dana Sells Its Venezuelan Operations

Dana Holding Corp. has pulled out of Venezuela, selling two factories there and taking a net $77 million fourth-quarter charge related to the divestiture.

The move is in response to the country's major currency fluctuations and Dana's difficulty exchanging dollars for Venezuelan bolivars. The axlemaker says the country accounts for less than 5% of its revenue.

Dana sold facilities, which had been operated by its C.A Danaven subsidiary, to locally owned and operated Manufacturing and Logistics Solutions Ltd. Dana will provide MLS with components and technical support as a tier two supplier operating outside the country.

Car sales in Venezuela plunged more than 75% to 23,700 units last year from a peak of 492,000 in 2007. Last week Ford Motor Co. said it will take an $800 million pretax charge in the fourth quarter on its business in the country and will no longer recognize it in its corporate results.

Ford, Chrysler and General Motors have been booking pretax charges since last spring to cover exchange rate adjustments for the deteriorating bolivar.