Bruno Decina's questions to Dana Inc (DAN) leadership • Q3 2024
Question
Bruno Decina inquired if the recent strong cost performance represented structural changes that would support higher long-term profitability and how past EV investments, potentially based on higher volume assumptions, have impacted the capital base and future returns.
Answer
Timothy Kraus, SVP & CFO, confirmed the cost savings are real, structural changes across purchasing, back-office, and plant operations that are expected to be enduring. On EV investments, Kraus explained that Dana has been able to flex its capital spending to match market demand, avoiding the creation of significant idle capacity, as the largest investments for the highest volume programs have not yet been made.