Warranty Obligations

12 Months Ended

Dec. 31, 2011

Note 15. 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 —

	2011			2010			2009
Balance, beginning of period	$	85		$	83		$	100
Amounts accrued for current period sales		36			41			34
Adjustments of prior accrual estimates		(4	)		11			3
Settlements of warranty claims		(44	)		(50	)		(56	)
Currency impact and other		(1	)					2
Balance, end of period	$	72		$	85		$	83

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.