Maumee-based Dana Corp. to pay Toyota $25M settlement

MAUMEE, Ohio (AP) " Dana Holding Corp. said Wednesday it will pay $25 million as part of a settlement with a subsidiary of the automaker Toyota Motor Corp. for warranty claims related to frames produced by Dana's former structural products business.

Dana plans to take a fourth-quarter charge as a result. The settlement was related to corrosion on the frames, made for certain Tacoma pickup trucks, the company said.

Dana said it "substantially divested" its structural parts business including the plant that manufactured the Tacoma frames in March 2010.

The Toyota subsidiary is Toyota Motor Engineering & Manufacturing North America Inc.

Shares of Dana closed at $18.27 on Tuesday.

Dana is based in Maumee and employs around 22,000 people worldwide.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.