Warranty Obligations

3 Months Ended

Mar. 31, 2013

Product Warranties Disclosures [Abstract]

Warranty Obligations

Warranty Obligations

We record a liability for estimated warranty obligations at the dates our products are sold. We record the liability based on our estimate of costs to settle future claims. Adjustments are made as new information becomes available.

Changes in warranty liabilities —

	Three Months Ended March 31,
	2013			2012
Balance, beginning of period	$	66		$	72
Amounts accrued for current period sales	6			9
Adjustments of prior accrual estimates				1
Settlements of warranty claims	(9		)	(6		)
Currency impact				1
Balance, end of period	$	63		$	77

In 2007 we were notified of an alleged quality issue at a foreign subsidiary of Dana that produced engine coolers for a unit of Sogefi SpA that were used in modules supplied to Volkswagen. Based on the information currently available to us, we do not believe that this matter will result in a material liability to Dana.

In 2012, Ford Motor Company filed a complaint alleging quality issues relating to products supplied by the former Structural Products business at Dana Canada Corporation. The Dana Canada facility was closed in 2008 and Dana Holding Corporation divested substantially all of the Structural Products business in 2010. Based on the information currently available to us, we do not believe this matter will result in a material liability to Dana.