Warranty Obligations

3 Months Ended

Mar. 31, 2012

Warranty Obligations

Note 13. 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,
	2012			2011
Balance, beginning of period	$	72		$	85
Amounts accrued for current period sales		9			10
Adjustments of prior accrual estimates		1			1
Settlements of warranty claims		(6	)		(13	)
Currency impact		1			2
Balance, end of period	$	77		$	85

We have been notified of an alleged quality issue at a foreign subsidiary of Dana that produces 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.