<PAGE>   1

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                         ------------------------------

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                    For the transition period from     to
                                                   ---    ---

                         Commission file number 0-21139

                          DURA AUTOMOTIVE SYSTEMS, INC.

             (Exact name of Registrant as specified in its charter)

         DELAWARE                                         38-3185711
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                       Identification No.)

            4508 IDS CENTER                                 55402
        MINNEAPOLIS, MINNESOTA                            (Zip Code)
(Address of principal executive offices)

                                 (612) 342-2311
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.

                 Yes  X                            No
                     ---                              ---

The number of shares outstanding of the Registrant's Class A common stock, par
value $.01 per share, at October 31, 2000 was 14,338,439 shares. The number of
shares outstanding of the Registrant's Class B common stock, par value $.01 per
share, at October 31, 2000 was 3,320,303 shares.
<PAGE>   2
                          DURA AUTOMOTIVE SYSTEMS, INC.
                                    FORM 10-Q

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
PART I        FINANCIAL INFORMATION                                                              PAGE NO.
<S>                                                                                              <C>
         Item 1.    Financial Statements:

                    Condensed Consolidated Statements of Income for the Three Months
                    Ended September 30, 2000 and 1999 (unaudited)                                   3

                    Condensed Consolidated Statements of Income for the Nine Months
                    Ended September 30, 2000 and 1999 (unaudited)                                   4

                    Condensed Consolidated Balance Sheets at September 30, 2000
                    (unaudited) and December 31, 1999                                               5

                    Condensed Consolidated Statements of Cash Flows for the Nine Months
                    Ended September 30, 2000 and 1999 (unaudited)                                   6

                    Notes to Condensed Consolidated Financial Statements (unaudited)                7

         Item 2.    Management's Discussion and Analysis of Financial Condition and Results
                    of Operations                                                                  21



PART II       OTHER INFORMATION

         Item 1.    Legal Proceedings                                                              28



SIGNATURE                                                                                          29
</TABLE>

                                       -2-
<PAGE>   3
ITEM 1 - FINANCIAL INFORMATION

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

           (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS - UNAUDITED)

<TABLE>
<CAPTION>
                                                                  Three Months Ended September 30,
                                                              --------------------------------------
                                                                    2000                 1999
                                                              -----------------     ----------------
<S>                                                           <C>                   <C>
Revenues                                                      $     587,081         $      580,886
Cost of sales                                                       493,450                491,479
                                                              -----------------     ----------------
        Gross profit                                                 93,631                 89,407
Selling, general and administrative expenses                         41,406                 37,344
Amortization expense                                                  6,814                  6,632
                                                              -----------------     ----------------
        Operating income                                             45,411                 45,431
Interest expense, net                                                27,284                 24,449
                                                              -----------------     ----------------
        Income before provision for income taxes,
        equity in losses of affiliate and minority
        interests                                                    18,127                 20,982
Provision for income taxes                                            7,260                  8,664
Equity in losses of affiliate and minority
  interests                                                              --                    415
Minority interest - dividends on trust preferred
  securities, net                                                       612                    612
                                                              -----------------     ----------------
        Net income                                            $      10,255         $       11,291
                                                              =================     ================

Basic earnings per common share                               $        0.59         $         0.65
                                                              =================     ================

Diluted earnings per common share                             $        0.58         $         0.63
                                                              =================     ================
</TABLE>

              The accompanying notes are an integral part of these
                       condensed consolidated statements.

                                       -3-
<PAGE>   4

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

           (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS - UNAUDITED)

<TABLE>
<CAPTION>
                                                                  Nine Months Ended September 30,
                                                              --------------------------------------
                                                                    2000                 1999
                                                              -----------------     ----------------
<S>                                                           <C>                   <C>
Revenues                                                      $   1,977,540         $   1,530,754
Cost of sales                                                     1,660,367             1,292,366
                                                              -----------------     ----------------
        Gross profit                                                317,173               238,388
Selling, general and administrative expenses                        128,971                92,320
Product recall charge                                                16,000                    --
Amortization expense                                                 20,885                17,221
                                                              -----------------     ----------------
        Operating income                                            151,317               128,847
Interest expense, net                                                82,553                55,509
                                                              -----------------     ----------------
        Income before provision for income taxes,
        equity in losses of affiliate and minority
        interests                                                    68,764                73,338
Provision for income taxes                                           27,781                29,595
Equity in losses of affiliate and minority
  interests                                                             914                 2,908
Minority interest - dividends on trust preferred
  securities, net                                                     1,834                 1,834
                                                              -----------------     ----------------
        Income before extraordinary item and
            accounting change                                        38,235                39,001
Extraordinary item - loss on early
  extinguishment of debt, net                                            --                (5,402)
Cumulative effect of change in accounting, net                           --                (3,147)
                                                              -----------------     ----------------
        Net income                                            $      38,235         $      30,452
                                                              =================     ================

Basic earnings per common share:
  Income before extraordinary item and
    accounting change                                         $        2.19         $        2.46
  Extraordinary item                                                     --                 (0.34)
  Cumulative effect of change in accounting                              --                 (0.20)
                                                              -----------------     ----------------
        Net income                                            $        2.19         $        1.92
                                                              =================     ================

Diluted earnings per common share:
  Income before extraordinary item and
    accounting change                                         $        2.13         $        2.35
  Extraordinary item                                                     --                 (0.31)
  Cumulative effect of change in accounting                              --                 (0.18)
                                                              -----------------     ----------------
        Net income                                            $        2.13         $        1.86
                                                              =================     ================
</TABLE>

              The accompanying notes are an integral part of these
                       condensed consolidated statements.

                                       -4-
<PAGE>   5

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                        September 30,          December 31,
                             Assets                                          2000                  1999
------------------------------------------------------------------     -----------------      ----------------
                                                                         (unaudited)
<S>                                                                    <C>                    <C>
Current assets:
       Cash and cash equivalents                                       $        11,625       $         23,697
       Accounts receivable, net                                                453,998                478,542
       Inventories                                                             133,842                136,562
       Other current assets                                                    167,673                154,704
                                                                       -----------------      ----------------
             Total current assets                                              767,138                793,505
                                                                       -----------------      ----------------

Property, plant and equipment, net                                             500,344                500,894
Goodwill, net                                                                1,024,812              1,067,937
Deferred income taxes and other assets, net                                     72,791                 82,531
                                                                       -----------------      ----------------
                                                                       $     2,365,085        $     2,444,867
                                                                       =================      ================

            Liabilities and Stockholders' Investment
------------------------------------------------------------------

Current liabilities:
       Accounts payable                                                $       278,057        $       281,413
       Accrued liabilities                                                     254,621                296,431
       Current maturities of long-term debt                                     55,124                 52,712
                                                                       -----------------      ----------------
             Total current liabilities                                         587,802                630,556
                                                                       -----------------      ----------------

Long-term debt, net of current maturities                                      758,571                776,750
Subordinated notes                                                             387,840                401,560
Other noncurrent liabilities                                                   141,940                149,755

Mandatorily redeemable convertible trust preferred securities                   55,250                 55,250

Stockholders' investment:
       Common stock - Class A                                                      142                    141
       Common stock - Class B                                                       33                     33
       Additional paid-in capital                                              339,591                339,041
       Treasury stock                                                           (1,604)                    --
       Retained earnings                                                       146,507                108,272
       Accumulated other comprehensive loss -
         cumulative translation adjustment                                     (50,987)               (16,491)
                                                                       -----------------      ----------------
             Total stockholders' investment                                    433,682                430,996
                                                                       -----------------      ----------------
                                                                       $     2,365,085        $     2,444,867
                                                                       =================      ================
</TABLE>

              The accompanying notes are an integral part of these
                     condensed consolidated balance sheets.

                                       -5-
<PAGE>   6
                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                       (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>
                                                                               Nine Months Ended September 30,
                                                                             ------------------------------------
                                                                                  2000                 1999
                                                                             ----------------     ---------------

<S>                                                                          <C>                  <C>
OPERATING ACTIVITIES:
      Net income                                                             $      38,235        $      30,452
      Adjustments to reconcile net income to
        net cash provided by operating activities -
         Depreciation and amortization                                              66,067               55,915
         Deferred income taxes                                                      (1,868)              (1,974)
         Equity in losses of affiliates and minority interest                          914                2,908
         Extraordinary loss on extinguishment of debt                                   --                5,402
         Cumulative effect of change in accounting, net                                 --                3,147
         Changes in other operating items                                          (21,806)             (14,953)
                                                                             ----------------     ---------------

         Net cash provided by operating activities                                  81,542               80,897
                                                                             ----------------     ---------------

INVESTING ACTIVITIES:
      Capital expenditures, net                                                    (76,513)             (57,947)
      Acquisitions, net of cash acquired                                           (19,836)            (434,948)
                                                                             ----------------     ---------------

         Net cash used in investing activities                                     (96,349)            (492,895)
                                                                             ----------------     ---------------

FINANCING ACTIVITIES:
      Short-term borrowings (repayments), net                                        2,123               (4,094)
      Long-term debt borrowings (repayments), net                                   (3,986)             445,572
      Debt issuance costs                                                               --              (19,537)
      Common stock repurchases                                                      (1,604)                  --
      Proceeds from issuance of common stock and
        exercise of stock options                                                      551                3,745
                                                                             ----------------     ---------------

         Net cash provided by (used in) financing activities                        (2,916)             425,686
                                                                             ----------------     ---------------

EFFECT OF EXCHANGE RATE ON CASH                                                      5,651              (16,503)
                                                                             ----------------     ---------------

NET DECREASE IN CASH AND CASH EQUIVALENTS                                          (12,072)              (2,815)

CASH AND CASH EQUIVALENTS:
      Beginning of period                                                           23,697               20,544
                                                                             ----------------     ---------------

      End of period                                                          $      11,625        $      17,729
                                                                             ================     ===============

SUPPLEMENTAL DISCLOSURE:
      Cash paid for interest                                                 $      69,965        $      37,426
      Cash paid for income taxes                                             $       2,633        $      13,291
</TABLE>

              The accompanying notes are an integral part of these
                       condensed consolidated statements.

                                       -6-
<PAGE>   7

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.       BASIS OF PRESENTATION

        We have prepared the condensed consolidated financial statements of Dura
Automotive Systems, Inc. ("Dura"), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. The information furnished
in the condensed consolidated financial statements includes normal recurring
adjustments and reflects all adjustments which are, in our opinion, necessary
for a fair presentation of the results of operations and statements of financial
position for the interim periods presented. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. We believe that the disclosures are
adequate to make the information presented not misleading when read in
conjunction with the financial statements and the notes thereto included in our
Annual Report on Form 10-K, as filed with the Securities and Exchange Commission
for the period ended December 31, 1999.

        Revenues and operating results for the three and nine months ended
September 30, 2000 are not necessarily indicative of the results to be expected
for the full year.

        Certain prior period amounts have been reclassified to conform with the
current period presentation.

2.       INVENTORIES

        Inventories consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                        September 30,           December 31,
                                             2000                   1999
                                       -----------------      -----------------
<S>                                    <C>                    <C>
           Raw materials               $         72,103       $         85,609
           Work-in-process                       32,973                 21,162
           Finished goods                        28,766                 29,791
                                       -----------------      -----------------
                                       $        133,842       $        136,562
                                       =================      =================
</TABLE>

3.       EARNINGS PER SHARE

        Basic earnings per share were computed by dividing net income by the
weighted average number of Class A and Class B common shares outstanding during
the period. Diluted earnings per share include (i) the effects of outstanding
stock options and warrants using the treasury stock method and (ii) the
conversion of the Preferred Securities, as follows (in thousands, except per
share amounts):

                                       -7-

<PAGE>   8
<TABLE>
<CAPTION>
                                                                  Three Months                Nine Months
                                                              Ended September 30,         Ended September 30,
                                                          ------------------------    -----------------------
                                                            2000          1999          2000         1999
                                                          ----------    ----------    ---------    ----------
<S>                                                       <C>           <C>           <C>          <C>
     Net income                                           $   10,255    $  11,291     $  38,235    $  30,452
     Interest expense on mandatorily redeemable
       convertible preferred securities, net of tax              612          612         1,834        1,834
                                                          ----------    ----------    ---------    ----------
     Net income applicable to common
       stockholders - diluted                             $   10,867    $  11,903     $  40,069    $  32,286
                                                          ==========    ==========    =========    ==========

     Weighted average number of Class A
       common shares outstanding                              14,150       14,085        14,130       12,553
     Weighted average number of Class B
       common shares outstanding                               3,320        3,322         3,320        3,324
                                                          ----------    ----------    ---------    ----------
                                                              17,470       17,407        17,450       15,877
     Dilutive effect of outstanding stock options
       after application of the treasury stock method             13          123            14          114
     Dilutive effect of warrants                                  --          152           101          102
     Dilutive effect of mandatorily redeemable
       convertible preferred securities, assuming
       conversion                                              1,289        1,289         1,289        1,289
                                                          ----------    ----------    ---------    ----------
     Diluted shares outstanding                               18,772       18,971        18,854       17,382
                                                          ==========    ==========    =========    ==========

     Basic earnings per share                             $     0.59    $    0.65     $    2.19    $    1.92
                                                          ==========    ==========    =========    ==========

     Diluted earnings per share                           $     0.58    $    0.63     $    2.13    $    1.86
                                                          ==========    ==========    =========    ==========
</TABLE>

4.       PRODUCT RECALL CHARGE

        In the second quarter of 2000, Dura settled two product recall issues
through a cost sharing agreement with a significant customer. As a result of
this agreement, Dura recorded a one-time pretax charge to operations of $16.0
million to cover amounts not previously reserved. These recalls were announced
in the first half of 1999 and involved concerns associated with Trident
Automotive plc (Trident) speed control cables and a secondary hood latch. Dura
acquired Trident in April of 1998.

5.       1999 FACILITY CONSOLIDATION CHARGE

        In the fourth quarter of 1999, Dura began to implement a comprehensive
plan (the "Plan") to consolidate certain facilities designed to lower its cost
structure and improve the long-term competitive position of Dura. As a result of
the Plan, Dura recognized charges to operations of $16.2 million. Included in
this charge are the costs associated with consolidating and eliminating certain
facilities and associated lease obligations of $1.4 million; severance related
to employee terminations of $13.2 million; and asset impairments of $1.6
million. Costs incurred and charged to the reserves as of September 30, 2000
amounted to $1.1 million related to lease and other closure costs, $4.9 million
in severance and $1.6 million related to asset impairment. The Plan originally
called for the termination of approximately 5 salaried plant management and 313
hourly plant manufacturing employees, of which 3 salaried and 51 hourly
employees had been terminated as of September 30, 2000 (see note 12).

                                       -8-
<PAGE>   9
6.       FACILITY REORGANIZATION RELATED TO ACQUISITIONS

        Dura has implemented reorganization plans designed to integrate the
operations of recent acquisitions. As of September 30, 2000, purchase
liabilities recorded in conjunction with the acquisitions included approximately
$36.2 million for costs associated with the shutdown and consolidation of
certain acquired facilities and $25.6 million for severance and other related
costs. Adjustments to the reserve recorded during the nine months ended
September 30, 2000 included a net increase of $4.2 million for costs related to
acquired facilities and a net reduction of $0.7 million in severance and other
related costs. All adjustments were reflected as an adjustment to goodwill.
Costs incurred and charged to the reserves during the nine months ended
September 30, 2000 amounted to $13.0 million related to acquired facilities and
$10.8 million in severance and other related costs.

7.       LONG-TERM DEBT

     Long-term debt consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                                                  September 30,         December 31,
                                                                       2000                 1999
                                                                 -----------------    -----------------
<S>                                                              <C>                  <C>
                Credit Agreement:
                  Tranche A and B term loans                     $        521,279     $        550,521
                  Revolving credit facility                               262,953              208,751
                Other                                                      29,463               70,190
                                                                 -----------------    -----------------
                                                                          813,695              829,462
                Less - Current maturities                                 (55,124)             (52,712)
                                                                 -----------------    -----------------
                Total long-term debt                             $        758,571     $        776,750
                                                                 =================    =================
</TABLE>

        In connection with the acquisitions of Adwest and Excel in March 1999,
Dura entered into an amended and restated $1.15 billion credit agreement
("Credit Agreement"). The Credit Agreement provides for revolving credit
facilities of $400.0 million, a $275.0 million tranche A term loan, a $275.0
million tranche B term loan and a $200.0 million interim term loan facility. As
of September 30, 2000, rates on borrowings under the Credit Agreement ranged
from 6.3% to 9.0%. Borrowings under the tranche A term loan are due and payable
in March 2005 and borrowings under the tranche B term loan are due and payable
in March 2006. The revolving credit facility is available until March 2005. The
Credit Agreement contains various restrictive covenants which limit
indebtedness, investments, rental obligations and cash dividends. The Credit
Agreement also requires Dura to maintain certain financial ratios including
minimum liquidity and interest coverage. Dura was in compliance with the
covenants as of September 30, 2000. Borrowings under the Credit Agreement are
collateralized by substantially all assets of Dura.

         The Credit Agreement provides Dura with the ability to denominate a
portion of its revolving credit borrowings in foreign currencies up to an amount
equal to $100.0 million. As of September 30, 2000, $222.0 million of borrowings
were denominated in US dollars, $6.0 million of borrowings were denominated in
Canadian dollars, $3.3 million of borrowings were denominated in Australian
dollars, and $31.7 million of borrowings were denominated in British pound
sterling.

                                       -9-
<PAGE>   10
8.       SENIOR SUBORDINATED NOTES

        In April 1999, Dura completed the offering of $300.0 million and Euro
100.0 million of senior subordinated notes ("Subordinated Notes"). The
Subordinated Notes mature in May 2009 and bear interest at 9% per year, which is
payable semi-annually. Net proceeds from this offering of approximately $394.7
million were used to repay the $200.0 million interim term loan, approximately
$78.1 million to retire other indebtedness and approximately $118.9 million was
used for general corporate purposes. These notes are collateralized by
guarantees of certain of Dura's subsidiaries.

9.       COMPREHENSIVE INCOME

        Comprehensive income reflects the change in equity of a business
enterprise during a period from transactions and other events and circumstances
from non-owner sources. For Dura, comprehensive income represents net income
adjusted for foreign currency translation adjustments. Comprehensive income for
the periods is as follows (in thousands):

<TABLE>
<CAPTION>
                                                         Three Months                  Nine Months
                                                      Ended September 30,          Ended September 30,
                                                  --------------------------    ---------------------------
                                                     2000           1999           2000           1999
                                                  -----------    -----------    -----------     -----------
<S>                                               <C>            <C>            <C>             <C>
Net income                                        $  10,255      $  11,291      $  38,235       $  30,452
Other comprehensive income:
   Foreign currency translation adjustment          (11,763)          (200)       (34,496)        (18,134)
                                                  -----------    -----------    -----------     -----------
Comprehensive income (loss)                       $  (1,508)     $  11,091      $   3,739       $  12,318
                                                  ===========    ===========    ===========     ===========
</TABLE>

10.      RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

        In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement requires the
recognition of derivative instruments as assets and liabilities, based on their
fair value, and specifies certain methods for the recognition of related gains
and losses. In June 2000, the FASB issued SFAS No. 138, which amends and
clarifies certain guidance in SFAS No. 133.

        Dura is in the process of implementing processes and procedures to
quantify the impact of adopting these statements effective January 1, 2001. The
effect of adopting these statements on Dura's financial position and results of
operations during 2001 will depend in part on the fair value of derivatives held
as of January 1, 2001 and future derivative transactions entered into.
Currently, Dura does not anticipate the adoption to materially impact its
results of operations.

                                      -10-
<PAGE>   11
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION

        The following condensed consolidating financial information presents
balance sheets, statements of income and cash flow information related to Dura's
business. Each Guarantor, as defined, is a direct or indirect wholly owned
subsidiary of Dura has fully and unconditionally guaranteed the 9% senior
subordinated notes issued by Dura Operating Corp., on a joint and several basis.
Separate financial statements and other disclosures concerning the Guarantors
have not been presented because management believes that such information is not
material to investors.

                                      -11-
<PAGE>   12
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
              CONSOLIDATING BALANCE SHEETS AS OF SEPTEMBER 30, 2000
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                           NON-
                                       OPERATING      GUARANTOR      GUARANTOR
                                         CORP.        COMPANIES      COMPANIES     ELIMINATIONS     CONSOLIDATED
                                     ------------  --------------  -------------  --------------  ----------------
<S>                                  <C>           <C>             <C>            <C>             <C>
              Assets
Current assets:
 Cash and cash equivalents           $      2,574  $        1,143  $       7,908  $           --  $         11,625
 Accounts receivable, net                 199,246          44,240        210,512              --           453,998
 Inventories                               48,159          22,656         63,027              --           133,842
 Other current assets                      89,176          13,851         64,646              --           167,673
 Due from affiliates                       85,202          42,547         10,259        (138,008)               --
                                     ------------  --------------  -------------  --------------  ----------------
  Total current assets                    424,357         124,437        356,352        (138,008)          767,138
                                     ------------  --------------  -------------  --------------  ----------------
Property, plant and equipment,
 net                                      194,350          51,110        254,884              --           500,344
Investment in subsidiaries                490,556          27,558         49,593        (567,707)               --
Notes receivable from
  affiliates                              354,993         118,796         35,573        (509,362)               --
Goodwill, net                             477,897          60,974        485,941              --         1,024,812
Deferred income taxes and other
  assets, net                              15,903          15,568         41,320              --            72,791
                                     ------------  --------------  -------------  --------------  ----------------
                                     $  1,958,056  $      398,443  $   1,223,663  $   (1,215,077) $      2,365,085
                                     ============  ==============  =============  ==============  ================
   Liabilities and Stockholders'
            Investment
Current liabilities:
Accounts payable                     $    120,514  $       23,862  $     133,681  $           --  $        278,057
Accrued liabilities                       111,609          17,750        125,262              --           254,621
Current maturities of long-
 term debt                                 32,795              14         22,315              --            55,124
Due to affiliates                          45,936          29,997         62,075        (138,008)               --
                                     ------------  --------------  -------------  --------------  ----------------
    Total current liabilities             310,854          71,623        343,333        (138,008)          587,802
                                     ------------  --------------  -------------  --------------  ----------------
Long-term debt, net of
 current maturities                       677,823              --         80,748              --           758,571
Subordinated notes                        387,840              --             --              --           387,840
Other noncurrent liabilities               39,053          30,866         72,021              --           141,940
Notes payable to affiliates                 2,567          57,382        449,413        (509,362)               --
                                     ------------  --------------  -------------  --------------  ----------------
  Total liabilities                     1,418,137         159,871        945,515        (647,370)        1,876,153
                                     ------------  --------------  -------------  --------------  ----------------
Mandatorily redeemable
 convertible trust preferred
 securities                                55,250              --             --              --            55,250
Stockholders' investment:                 484,669         238,572        329,135        (567,707)          484,669
 Accumulated other compre-
  hensive loss - cumulative
  translation adjustment                       --              --        (50,987)             --           (50,987)
                                     ------------  --------------  -------------  --------------  ----------------
                                     $  1,958,056  $      398,443  $   1,223,663  $   (1,215,077) $      2,365,085
                                     ============  ==============  =============  ==============  ================
</TABLE>

                                      -12-
<PAGE>   13
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                          DURA                          NON-
                                        OPERATING      GUARANTOR      GUARANTOR
                                          CORP.        COMPANIES      COMPANIES     ELIMINATIONS   CONSOLIDATED
                                       -----------    -----------    -----------   -------------- --------------
<S>                                    <C>            <C>            <C>           <C>            <C>
 Revenues                              $   270,735    $    87,332    $   241,769   $    (12,755)  $      587,081
 Cost of sales                             228,729         73,821        203,655        (12,755)         493,450
                                       -----------    -----------    -----------   -------------- --------------
   Gross profit                             42,006         13,511         38,114             --           93,631
 Selling, general and
   administrative expenses                  18,401          3,930         19,075             --           41,406
 Amortization expense                        3,292            566          2,956             --            6,814
                                       -----------    -----------    -----------   -------------- --------------
  Operating income                          20,313          9,015         16,083             --           45,411
 Interest expense, net                      16,630            669          9,985             --           27,284
                                       -----------    -----------    -----------   -------------- --------------
  Income (loss) before provision
    for income taxes, equity in
    earnings of affiliates
    and minority interest                    3,683          8,346          6,098             --           18,127
 Provision for income taxes                  1,955          2,595          2,710             --            7,260
 Minority interests and equity in
  earnings of affiliates, net               (9,139)            --         (1,383)        10,522               --
 Minority interest-dividends on
   trust preferred securities, net             612             --             --             --              612
                                       -----------    -----------    -----------   -------------  --------------
   Net income                          $    10,255    $     5,751    $     4,771   $    (10,522)  $       10,255
                                       ===========    ===========    ===========   =============  ==============

</TABLE>

                                      -13-
<PAGE>   14



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
 CONSOLIDATING STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                           DURA                         NON-
                                         OPERATING     GUARANTOR      GUARANTOR
                                            CORP.      COMPANIES      COMPANIES     ELIMINATIONS   CONSOLIDATED
                                        -----------   -----------   ------------   -------------- --------------
<S>                                     <C>           <C>           <C>            <C>            <C>
 Revenues                                $ 926,918     $ 308,824     $ 780,604       $ (38,806)   $  1,977,540
 Cost of sales                             783,260       254,988       660,925         (38,806)      1,660,367
                                        -----------   -----------   ------------   -------------- --------------
   Gross profit                            143,658        53,836       119,679              --         317,173
 Selling, general and
   administrative expenses                  59,957        12,869        56,145              --         128,971
 Product recall charge                      16,000            --            --              --          16,000
 Amortization expense                        9,886         1,699         9,300              --          20,885
                                        -----------   -----------   ------------   -------------- --------------
  Operating income                          57,815        39,268        54,234              --         151,317
 Interest expense, net                      47,128         2,009        33,416              --          82,553
                                        -----------   -----------   ------------   -------------- --------------
  Income before provision for
    income taxes, equity in
    earnings of affiliates
    and minority interest                   10,687        37,259        20,818              --          68,764
 Provision for income taxes                  6,088        12,154         9,539              --          27,781
 Minority interests and equity in
  earnings (loses) of affiliates, net      (35,470)           --        (5,882)         42,266             914
 Minority interest-dividends on
   trust preferred securities, net           1,834            --            --              --           1,834
                                        -----------   -----------   ------------   -------------- --------------
   Net income                            $  38,235     $  25,105    $   17,161       $ (42,266)   $     38,235
                                        ===========   ===========   ============   ============== ==============
</TABLE>

                                      -14-
<PAGE>   15
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
            CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE
                      NINE MONTHS ENDED SEPTEMBER 30, 2000
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                        NON-
                                       OPERATING     GUARANTOR    GUARANTOR
                                         CORP.       COMPANIES    COMPANIES     ELIMINATIONS    CONSOLIDATED
                                       ---------    -----------  -----------   --------------  --------------
<S>                                    <C>          <C>          <C>           <C>             <C>
OPERATING ACTIVITIES:
 Net income (loss)                     $  38,235    $    25,105  $    17,161   $      (42,266) $       38,235
 Adjustments to reconcile net
   income (loss) to net cash
   provided by operating
   activities:
 Depreciation and amortization            29,284          6,789       29,994               --          66,067
 Deferred income taxes                        --             --       (1,868)              --          (1,868)
 Equity in losses of affiliates
   and minority interest                 (35,470)            --       (5,882)          42,266             914
 Changes in other operating
   items                                     747         (3,009)     (19,544)              --         (21,806)
                                       ---------    -----------  -----------   --------------  --------------
 Net cash provided by operating
  activities                              32,796         28,885       19,861               --          81,542
                                       ---------    -----------  -----------   --------------  --------------
INVESTING ACTIVITIES:
 Acquisitions, net of cash                    --         (9,190)     (10,646)              --         (19,836)
  Acquired
 Capital expenditures, net               (27,936)        (7,401)     (41,176)              --         (76,513)
                                       ---------    -----------  -----------   --------------  --------------
     Net cash used in investing
       activities                        (27,936)       (16,591)     (51,822)              --         (96,349)
                                       ---------    -----------  -----------   --------------  --------------
FINANCING ACTIVITIES:
 Short-term borrowings
  (repayments), net                       14,721           (318)     (12,280)              --           2,123
 Long-term borrowings
  (repayments), net                       16,086            (79)     (19,993)              --          (3,986)
 Debt financing (to)/from
   affiliates                            (19,587)       (10,468)      30,055               --              --
 Common stock repurchases                 (1,604)            --           --               --          (1,604)
 Proceeds from issuance of
  common stock and exercise
  of stock options                           551             --           --               --             551
                                       ---------    -----------  -----------   --------------  --------------
     Net cash provided by (used in)
     financing activities                 10,167        (10,865)      (2,218)              --          (2,916)
                                       ---------    -----------  -----------   --------------  --------------
EFFECT OF EXCHANGE
RATE ON CASH                             (13,720)            --       19,371               --           5,651
                                       ---------    -----------  -----------   --------------  --------------
NET CHANGE IN CASH
 AND CASH EQUIVALENTS                      1,307          1,429      (14,808)              --         (12,072)
CASH AND CASH
 EQUIVALENTS:
 Beginning of period                       1,267           (286)      22,716               --          23,697
                                       ---------    -----------  -----------   --------------  --------------
 End of period                         $   2,574    $     1,143  $     7,908   $           --  $       11,625
                                       =========    ===========  ===========   ==============  ==============
</TABLE>

                                      -15-
<PAGE>   16

11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
              CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 1999
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                          NON-
                                       OPERATING      GUARANTOR      GUARANTOR
                                         CORP.        COMPANIES      COMPANIES     ELIMINATIONS      CONSOLIDATED
                                     -------------  -------------  -------------  ---------------  ----------------
<S>                                  <C>            <C>            <C>            <C>              <C>
              Assets
Current assets:
 Cash and cash equivalents           $         277  $         704  $      22,716  $            --  $         23,697
 Accounts receivable, net                  161,403         94,542        222,597               --           478,542
 Inventories                                36,062         32,513         67,987               --           136,562
 Other current assets                       66,920         23,171         64,613               --           154,704
 Due from affiliates                       167,536        136,813         10,666         (315,015)               --
                                     -------------  -------------  -------------  ---------------  ----------------
  Total current assets                     432,198        287,743        388,579         (315,015)          793,505
                                     -------------  -------------  -------------  ---------------  ----------------
Property, plant and equipment,
 net                                       125,328        117,960        257,606               --           500,894
Investment in subsidiaries                 558,950         29,042         43,459         (631,451)               --
Notes receivable from
 affiliates                                450,669          3,466         36,557         (490,692)               --
Goodwill, net                              355,605        186,117        526,215               --         1,067,937
Deferred income taxes and other
  assets, net                               38,651         13,756         30,124               --            82,531
                                     -------------  -------------  -------------  ---------------  ----------------
                                     $   1,961,401  $     638,084  $   1,282,540  $    (1,437,158) $      2,444,867
                                     =============  =============  =============  ===============  ================
   Liabilities and Stockholders'
            Investment
Current liabilities:
Accounts payable                     $     102,983  $      37,324  $     141,106  $            --  $        281,413
Accrued liabilities                         93,727         51,379        151,325               --           296,431
Current maturities of long-
 term debt                                  16,247          2,159         34,306               --            52,712
Due to affiliates                          155,773        111,204         48,038         (315,015)               --
                                     -------------  -------------  -------------  ---------------  ----------------
    Total current liabilities              368,730        202,066        374,775         (315,015)          630,556
                                     -------------  -------------  -------------  ---------------  ----------------
Long-term debt, net of
 current maturities                        661,737             79        114,934               --           776,750
Subordinated notes                         401,560             --             --               --           401,560
Other noncurrent liabilities                26,637         55,467         67,651               --           149,755
Notes payable to affiliates                     --         36,565        454,127         (490,692)               --
                                     -------------  -------------  -------------  ---------------  ----------------
  Total liabilities                      1,458,664        294,177      1,011,487         (805,707)        1,958,621
                                     -------------  -------------  -------------  ---------------  ----------------
Mandatorily redeemable
 convertible trust preferred
 securities                                 55,250             --             --               --            55,250
Stockholders' investment:                  447,487        343,907        287,544         (631,451)          447,487
 Accumulated other compre-
  hensive loss - cumulative
  translation adjustment                        --             --        (16,491)              --           (16,491)
                                     -------------  -------------  -------------  ---------------  ----------------
                                     $   1,961,401  $     638,084  $   1,282,540  $    (1,437,158) $      2,444,867
                                     =============  =============  =============  ===============  ================
</TABLE>

                                      -16-
<PAGE>   17
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                          NON-
                                       OPERATING      GUARANTOR      GUARANTOR
                                         CORP.        COMPANIES      COMPANIES      ELIMINATIONS     CONSOLIDATED
                                     -------------  -------------  -------------  ---------------  ----------------
<S>                                  <C>            <C>            <C>            <C>              <C>
Revenues                             $     197,921  $     168,478  $     219,506  $        (5,019) $        580,886
Cost of sales                              165,192        144,029        187,277           (5,019)          491,479
                                     -------------  -------------  -------------  ---------------  ----------------
  Gross profit                              32,729         24,449         32,229               --            89,407
Selling, general and
 administrative expenses                    19,597          3,820         13,927               --            37,344
Amortization expense                         2,448          1,399          2,785               --             6,632
                                     -------------  -------------  -------------  ---------------  ----------------
  Operating income                          10,684         19,230         15,517               --            45,431
Interest expense, net                       14,970            770          8,709               --            24,449
                                     -------------  -------------  -------------  ---------------  ----------------
  Income before provision for
   income taxes, equity in
   earnings (losses) of affiliates
   and minority interest                    (4,286)        18,460          6,808               --            20,982
Provision (benefit) for income
  taxes                                     (1,520)         7,257          2,927               --             8,664
Minority interest and equity in
  earnings (losses) of affiliates,
  net                                      (14,669)            --             12           15,072               415
Minority interest-dividends on
 trust preferred securities, net               612             --             --               --               612
                                     -------------  -------------  -------------  ---------------  ----------------
  Net income (loss)                  $      11,291  $      11,203  $       3,869  $       (15,072) $         11,291
                                     =============  =============  =============  ===============  ================
</TABLE>

                                      -17-
<PAGE>   18
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
CONSOLIDATING STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                          NON-
                                       OPERATING      GUARANTOR      GUARANTOR
                                         CORP.        COMPANIES      COMPANIES      ELIMINATIONS     CONSOLIDATED
                                     -------------  -------------  -------------  ---------------  ----------------
<S>                                  <C>            <C>            <C>            <C>              <C>
Revenues                             $     555,031  $     433,914  $     556,855  $       (15,046) $      1,530,754
Cost of sales                              468,985        367,969        470,458          (15,046)        1,292,366
                                     -------------  -------------  -------------  ---------------  ----------------
  Gross profit                              86,046         65,945         86,397               --           238,388
Selling, general and
 administrative expenses                    44,313         10,701         37,306               --            92,320
Amortization expense                         5,441          3,950          7,830               --            17,221
                                     -------------  -------------  -------------  ---------------  ----------------
  Operating income                          36,292         51,294         41,261               --           128,847
Interest expense, net                       33,447          2,353         19,709               --            55,509
                                     -------------  -------------  -------------  ---------------  ----------------
  Income before provision for
   income taxes, equity in
   earnings (losses) of affiliates
   and minority interest                     2,845         48,941         21,552               --            73,338
Provision for income taxes                   1,020         18,108         10,467               --            29,595
Minority interest and equity in
  earnings (losses) of affiliates,
  net                                      (35,619)            --         (2,445)          40,972             2,908
Minority interest-dividends on
 trust preferred securities, net             1,834             --             --               --             1,834
                                     -------------  -------------  -------------  ---------------  ----------------
  Income (loss) before
   extraordinary item                       35,610         30,833         13,530          (40,972)           39,001
Extraordinary item - loss on
 early extinguishment of
 debt, net                                  (2,011)            --         (3,391)              --            (5,402)
Cumulative effect of change
  in accounting, net                        (3,147)            --             --               --            (3,147)
                                     -------------  -------------  -------------  ---------------  ----------------
  Net income (loss)                  $      30,452  $      30,833  $      10,139  $       (40,972) $         30,452
                                     =============  =============  =============  ===============  ================
</TABLE>

                                      -18-

<PAGE>   19
11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
            CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE
                      NINE MONTHS ENDED SEPTEMBER 30, 1999
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                         DURA                          NON-
                                       OPERATING      GUARANTOR      GUARANTOR
                                         CORP.        COMPANIES      COMPANIES      ELIMINATIONS     CONSOLIDATED
                                     -------------  -------------  -------------  ---------------  ----------------
<S>                                  <C>            <C>            <C>            <C>              <C>
OPERATING ACTIVITIES:
 Net income (loss)                   $      30,452  $      30,833  $      10,139  $       (40,972) $         30,452
 Adjustments to reconcile net
   income (loss) to net cash
   provided by (used in) operating
   activities:
   Depreciation and amortization            18,747         13,235         23,933               --            55,915
   Deferred income taxes                        --             --         (1,974)              --            (1,974)
   Equity in losses of affiliates          (39,138)            --          1,074           40,972             2,908
   Extraordinary loss on
    extinguishment of debt                   2,011             --          3,391               --             5,402
   Cumulative effect of change in
    accounting, net                          3,147             --             --               --             3,147
   Changes in other operating items         60,526        (38,008)       (37,471)              --           (14,953)
                                     -------------  -------------  -------------  ---------------  ----------------
 Net cash provided by (used in)
  operating activities                      75,745          6,060           (908)              --            80,897
                                     -------------  -------------  -------------  ---------------  ----------------
INVESTING ACTIVITIES:
 Acquisitions, net                        (225,265)            --       (209,683)              --          (434,948)
 Capital expenditures, net                  (7,486)       (15,942)       (34,519)              --           (57,947)
                                     -------------  -------------  -------------  ---------------  ----------------
    Net cash used for investing
     activities                           (232,751)       (15,942)      (244,202)              --          (492,895)
                                     -------------  -------------  -------------  ---------------  ----------------
FINANCING ACTIVITIES:
 Short-term borrowings
  (repayments), net                         (6,921)         1,085          1,742               --            (4,094)
 Long-term borrowings
  (repayments), net                        760,125         (9,760)      (304,793)              --           445,572
 Debt issuance costs                       (19,537)          --               --               --           (19,537)
 Debt financing (to)/from
 affiliates                               (359,509)        19,569        339,940               --                --
 Proceeds from issuance of common
  stock and exercise of stock
  options                                    3,745             --             --               --             3,745
                                     -------------  -------------  -------------  ---------------  ----------------
    Net cash provided by
     financing activities                  377,903         10,894         36,889               --           425,686
                                     -------------  -------------  -------------  ---------------  ----------------
EFFECT OF EXCHANGE
 RATE ON CASH                                   --             (5)       (16,498)              --           (16,503)
                                     -------------  -------------  -------------  ---------------  ----------------
NET CHANGE IN CASH
 AND CASH EQUIVALENTS                      220,897          1,007       (224,719)              --            (2,815)
CASH AND CASH
 EQUIVALENTS:
 Beginning of period                         1,247           (557)        19,854               --            20,544
                                     -------------  -------------  -------------  ---------------  ----------------
 End of period                       $     222,144  $         450  $    (204,865) $            --  $         17,729
                                     =============  =============  =============  ===============  ================
</TABLE>

                                      -19-
<PAGE>   20
12.      SUBSEQUENT EVENT

         As a result of the reduced demand in the recreational vehicle industry
and the utilization of available capacity within Dura's automotive operations
resulting from Dura's focus on lean manufacturing, Dura has begun to take the
following actions in the fourth quarter of 2000:

         -        Discontinue manufacturing operations at two of its North
                  American facilities and relocate production to other Dura
                  facilities. The closures include the automotive and
                  recreational vehicle component facility in Elkhart, Ind. and
                  the automotive parking brake manufacturing facility in East
                  Jordan, MI.

         -        Combine the Driver Controls and Engineered Products divisions
                  into a single division, Cockpit Systems. Additionally, Dura
                  will reduce and consolidate certain support activities to
                  achieve an appropriate level relative to remaining operations
                  and future business requirements.

         -        A previously planned European facility closure will no longer
                  occur due to customer and capacity issues; however, we
                  continue to study our European manufacturing capacity for
                  additional cost reduction opportunities.

        These actions will result in a fourth quarter restructuring charge of
$5.7 million and the reversal of a restructuring charge previously booked in the
fourth quarter of 1999 of $7.6 million. The fourth quarter 2000 charge will
require cash payments of approximately $5.3 million over the next twelve months
combined with asset impairments of approximately $0.4 million.

        The decision to exit the two facilities will result in a reduction in
the work force of approximately 50 salaried and 426 hourly employees.
Additionally, in order to maintain the appropriate balance of support activities
relative to business operations conducted by Dura including the consolidation of
the two divisions into one, it will be necessary to rationalize these activities
throughout the company. This action will result in an additional reduction of
approximately 55 salaried employees. The restructuring actions are expected to
be complete by the end of 2001.


                                      -20-
<PAGE>   21
ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

The following management's discussion and analysis of financial condition and
results of operations (MD&A) should be read in conjunction with the MD&A
included in Dura's Annual Report on Form 10-K for the period ended December 31,
1999.

COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2000 TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1999

Revenues -- Revenues were $587.1 million for the three months ended September
30, 2000 compared to $580.9 million for the comparable period of 1999. The
increase in revenues is primarily the result of the full quarter impact of the
operations of the Meritor seat track business acquired during the fourth quarter
of 1999. Partially offsetting the Meritor seat track revenue was unfavorable
exchange rate fluctuations primarily related to the devaluation of the Euro and
U.K. pound, continued weakness in the recreational vehicle market and production
cuts related to the Firestone tire recall.

Cost of Sales -- Cost of sales were $493.5 million for the three months ended
September 30, 2000 compared to $491.5 million for the comparable period of 1999.
Cost of sales as a percentage of revenues for the three months ended September
30, 2000 was 84.1% compared to 84.6% for the comparable period of 1999. The
corresponding increase in gross margin is due primarily to the implementation of
Dura's restructuring plan and continued focus on cost reduction.

S, G & A Expenses -- Selling, general and administrative expenses were $41.4
million for the three months ended September 30, 2000 compared to $37.3 million
for the comparable period of 1999. As a percentage of revenues, selling, general
and administrative expenses were 7.1% for the three months ended September 30,
2000 compared to 6.4% for the comparable period of 1999. These increases are due
primarily to incremental costs from the Meritor seat track acquisition discussed
above, ongoing consulting expenses for developing a web based sourcing program,
the Six-Sigma Black Belt cost reduction program and a continued focus on
research and development of new products.

Amortization Expense -- Amortization expense for the three months ended
September 30, 2000 was $6.8 million compared to $6.6 million for the comparable
period of 1999. The increase is primarily due to the Meritor seat track
acquisition.

Interest Expense -- Interest expense for the three months ended September 30,
2000 was $27.3 million compared to $24.4 million for the comparable period of
1999. The increase was due principally to borrowings incurred related to the
Meritor seat track acquisition.

                                      -21-
<PAGE>   22
Income Taxes -- The effective income tax rate was 40.1% for the three months
ended September 30, 2000 and 41.3% for the comparable period of 1999. The
effective rates differed from the statutory rates as a result of higher foreign
tax rates, the effects of state taxes and non-deductible goodwill amortization.

COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2000 TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999

Revenues -- Revenues were $1,977.5 million for the nine months ended September
30, 2000 compared to $1,530.8 million for the comparable period of 1999. The
increase in revenues is primarily the result of the impact of the operations of
Excel, Adwest and the Meritor seat track business acquired during the first and
fourth quarter of 1999. Partially offsetting the Excel, Adwest and Meritor seat
track revenue was unfavorable exchange rate fluctuations primarily related to
the devaluation of the Euro and U.K. pound, continued weakness in the
recreational vehicle market and production cuts related to the Firestone tire
recall.

Cost of Sales -- Cost of sales were $1,660.4 million for the nine months ended
September 30, 2000 compared to $1,292.4 million for the comparable period of
1999. Cost of sales as a percentage of revenues for the nine months ended
September 30, 2000 was 84.0% compared to 84.4% for the comparable period of
1999. The corresponding increase in gross margin is due primarily to the
implementation of Dura's restructuring plan and continued focus on cost
reduction.

S, G & A Expenses -- Selling, general and administrative expenses were $129.0
million for the nine months ended September 30, 2000 compared to $92.3 million
for the comparable period of 1999. As a percentage of revenues, selling, general
and administrative expenses were 6.5% for the nine months ended September 30,
2000 compared to 6.0% for the comparable period of 1999. These increases are due
primarily to incremental costs from the acquisitions discussed above, ongoing
consulting expenses for developing a web based sourcing program, the Six-Sigma
Black Belt cost reduction program and a continued focus on research and
development of new products.

Product Recall Charge -- In the second quarter of 2000, Dura settled two product
recall issues through a cost sharing agreement with a significant customer. As a
result of this agreement, Dura recorded a one-time pretax charge to operations
of $16.0 million to cover amounts not previously reserved. The payments related
to this charge will be made over a three-year period and have begun in July of
2000. These recalls were announced in the first half of 1999 and involved
concerns associated with Trident speed control cables and a secondary hood
latch. Dura acquired Trident in April of 1998.

Amortization Expense -- Amortization expense for the nine months ended September
30, 2000 was $20.9 million compared to $17.2 million for the comparable period
of 1999. The increase is due to additional goodwill amortization as a result of
the acquisitions discussed above.

Interest Expense -- Interest expense for the nine months ended September 30,
2000 was $82.6 million compared to $55.5 million for the comparable period of
1999. The increase is due principally to borrowings incurred related to the
acquisitions of Excel, Adwest and Meritor during 1999.

                                      -22-
<PAGE>   23
Income Taxes -- The effective income tax rate was 40.4% for the nine months
ended September 30, 2000 and 40.4% for the comparable period of 1999. The
effective rates differed from the statutory rates as a result of higher foreign
tax rates, the effects of state taxes and non-deductible goodwill amortization.

SUBSEQUENT EVENT

As a result of the reduced demand in the recreational vehicle industry and the
utilization of available capacity within Dura's automotive operations resulting
from Dura's focus on lean manufacturing, Dura has begun to take the following
actions in the fourth quarter of 2000:

         -        Discontinue manufacturing operations at two of its North
                  American facilities and relocate production to other Dura
                  facilities. The closures include the automotive and
                  recreational vehicle component facility in Elkhart, Ind. and
                  the automotive parking brake manufacturing facility in East
                  Jordan, MI.

         -        Combine the Driver Controls and Engineered Products divisions
                  into a single division, Cockpit Systems. Additionally, Dura
                  will reduce and consolidate certain support activities to
                  achieve an appropriate level relative to remaining operations
                  and future business requirements.

         -        A previously planned European facility closure will no longer
                  occur due to customer and capacity issues; however, we
                  continue to study our European manufacturing capacity for
                  additional cost reduction opportunities.

These actions will result in a fourth quarter restructuring charge of $5.7
million and the reversal of a restructuring charge previously booked in the
fourth quarter of 1999 of $7.6 million. The fourth quarter 2000 charge will
require cash payments of approximately $5.3 million over the next twelve months
combined with asset impairments of approximately $0.4 million. We expect that
the cash costs of these actions will be recovered within approximately one year.


The decision to exit the two facilities will result in a reduction in the work
force of approximately 50 salaried and 426 hourly employees. Additionally, in
order to maintain the appropriate balance of support activities relative to
business operations conducted by Dura including the consolidation of the two
divisions into one, it will be necessary to rationalize these activities
throughout the company. This action will result in an additional reduction of
approximately 55 salaried employees. The restructuring actions are expected to
be complete by the end of 2001.


                                      -23-
<PAGE>   24
LIQUIDITY AND CAPITAL RESOURCES

In connection with the acquisitions of Excel and Adwest in March 1999, Dura
entered into an amended and restated $1.15 billion credit agreement ("Credit
Agreement"). The Credit Agreement provides for revolving credit facilities of
$400.0 million, a $275.0 million tranche A term loan, a $275.0 million tranche B
term loan and a $200.0 million interim term loan facility. As of September 30,
2000, rates on borrowings under the Credit Agreement ranged from 6.3% to 9.0%.
Borrowings under the tranche A term loan are due and payable in March 2005 and
borrowings under the tranche B term loan are due and payable in March 2006. The
revolving credit facility is available until March 2005. The Credit Agreement
contains various restrictive covenants that limit indebtedness, investments,
rental obligations and cash dividends. The Credit Agreement also requires Dura
to maintain certain financial ratios including minimum liquidity and interest
coverage. Dura was in compliance with the covenants as of September 30, 2000.
Borrowings under the Credit Agreement are collateralized by substantially all
assets of Dura.

The Credit Agreement provides Dura with the ability to denominate a portion of
its revolving credit borrowings in foreign currencies up to an amount equal to
$100.0 million. As of September 30, 2000, $222.0 million of borrowings were
denominated in US dollars, $6.0 million of borrowings were denominated in
Canadian dollars, $3.3 million of borrowings were denominated in Australian
dollars and $31.7 million of borrowings were denominated in British pound
sterling.

In April 1999, the Company completed the offering of $300.0 million and Euro
100.0 million of senior subordinated notes ("Subordinated Notes"). The
Subordinated Notes mature in May 2009 and bear interest at 9% per year, which is
payable semi-annually. Net proceeds from this offering of approximately $394.7
million were used to repay the $200.0 million interim term loan, approximately
$78.1 million to retire the indebtedness and approximately $118.9 million was
used for general corporate purposes. These notes are collateralized by
guarantees of certain of Dura's subsidiaries.

During the first nine months of 2000, Dura provided cash from operations of
$81.5 million, compared to a $80.9 million in 1999. Cash generated from
operations before changes in working capital items was $59.7 million for 2000
compared to $65.9 million for 1999. Working capital resulted in a use of cash of
$21.8 million in 2000 compared to a use of cash of $15.0 million in 1999. The
increase in cash used by working capital is primarily the result of the timing
of cash receipts and cash payments.

Net cash used in investing activities was $96.3 million for the first nine
months of 2000 as compared to $492.9 million in 1999. Net capital expenditures
totaled $76.5 million for the first nine months of 2000 primarily for equipment
and dedicated tooling purchases related to new and replacement programs with an
additional $19.8 million used for acquisitions. This compares with net capital
expenditures of $57.9 million in 1999 and $434.9 million spent primarily on the
acquisitions of Excel and Adwest. The acquisitions made during the first nine
months of 2000 included the purchase of the Jack Division of Ausco Products,
Inc. a supplier of mechanical jacks for the automotive industry and the purchase
of additional ownership in Pollone S.A. Industria E Comercio (Brazil) and Bowden
TSK (U.K.).

                                      -24-
<PAGE>   25
Net cash used for financing activities totaled $2.9 million for the first nine
months of 2000 compared with cash provided of $425.7 million in 1999.
Approximately $1.9 million of cash was repaid through net borrowings.

At September 30, 2000, Dura had unused borrowing capacity of approximately
$124.8 million under its most restrictive debt covenant. Dura believes the
borrowing availability under its credit agreement, together with funds generated
by operations, should provide liquidity and capital resources to pursue its
business strategy for the foreseeable future, with respect to working capital,
capital expenditures, and other operating needs. Dura estimates its 2000 capital
expenditures will approximate $100 million.

During 1999, Dura established the Deferred Income Leadership Stock Purchase Plan
(the "Deferred Income Stock Plan"), which allows certain employees to defer
receipt of all or a portion of their annual cash bonus. Dura makes a matching
contribution of one-third of the employee's deferral. In accordance with the
terms of the plan, the employee's deferral and Dura's matching contribution have
been placed in a "Rabbi" trust, which invests solely in Dura's Class A common
stock. This trust arrangement offers the employee a degree of assurance for
ultimate payment of benefits without causing constructive receipt for income tax
purposes. The assets of the trust remain subject to the creditors of Dura and
are not the property of the employees; therefore, they are included as a
separate component of stockholders' investment under the caption Treasury Stock.
During the first nine months of 2000, Dura made net Class A common stock
repurchases of $1.6 million related to the Deferred Income Stock Plan.

QUARTERLY RESULTS OF OPERATIONS AND SEASONALITY

Dura typically experiences decreased revenues and operating income during the
third calendar quarter of each year due to production shutdowns at OEMs for
model changeovers and vacations. Certain mobile products are seasonal in that
sales in the fourth quarter are normally at reduced levels.

EFFECTS OF INFLATION

Inflation potentially affects Dura in two principal ways. First, a significant
portion of Dura's debt is tied to prevailing short-term interest rates which may
change as a result of inflation rates, translating into changes in interest
expense. Second, general inflation can impact material purchases, labor and
other costs. In many cases, Dura has limited ability to pass through
inflation-related cost increases due to the competitive nature of the markets
that Dura serves. In the past few years, however, inflation has not been a
significant factor for Dura.

MARKET RISK

Dura is exposed to various market risks, including changes in foreign currency
exchange rates and interest rates. Market risk is the potential loss arising
from adverse changes in market rates and prices, such as foreign currency
exchange and interest rates. Dura does not enter into derivatives or other
financial instruments for trading or speculative purposes. Dura enters into
financial instruments to manage and reduce the impact of changes in foreign
currency exchange rates and interest rates. The counterparties are major
financial institutions.

                                      -25-
<PAGE>   26
Dura manages its interest rate risk by balancing the amount of fixed and
variable debt. For fixed rate debt, interest rate changes affect the fair market
value but do not impact earnings or cash flows. Conversely for variable rate
debt, interest rate changes generally do not affect the fair market value but do
impact future earnings and cash flows, assuming other factors are held constant.

ACCOUNTING POLICIES

        In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement requires the
recognition of derivative instruments as assets and liabilities, based on their
fair value, and specifies certain methods for the recognition of related gains
and losses. In June 2000, the FASB issued SFAS No. 138, which amends and
clarifies certain guidance in SFAS No. 133.

        Dura is in the process of implementing processes and procedures to
quantify the impact of adopting these statements effective January 1, 2001. The
effect of adopting these statements on Dura's financial position and results of
operations during 2001 will depend in part on the fair value of derivatives held
as of January 1, 2001 and future derivative transactions entered into.
Currently, Dura does not anticipate the adoption to materially impact its
results of operations.

FOREIGN CURRENCY TRANSACTIONS

A significant portion of Dura's revenues were derived from manufacturing
operations in Europe, Canada and Latin America. The results of operations and
financial position of Dura's operations in these countries are principally
measured in their respective currency and translated into U.S. dollars. The
effects of foreign currency fluctuations in such countries are somewhat
mitigated by the fact that expenses are generally incurred in the same
currencies in which revenues are generated. The reported income of these
subsidiaries will be higher or lower depending on a weakening or strengthening
of the U.S. dollar against the respective foreign currency.

A significant portion of Dura's assets are based in its foreign operations and
are translated into U.S. dollars at foreign currency exchange rates in effect as
of the end of each period, with the effect of such translation reflected as a
separate component of stockholders' investment. Accordingly, Dura's consolidated
stockholders' investment will fluctuate depending upon the weakening or
strengthening of the U.S. dollar against the respective foreign currency.

Dura's strategy for management of currency risk relies primarily upon conducting
its operations in such countries' respective currency and may, from time to
time, engage in hedging programs intended to reduce Dura exposure to currency
fluctuations.

                                      -26-
<PAGE>   27
FORWARD-LOOKING STATEMENTS

All statements, other than statements of historical fact, included in this Form
10-Q, including without limitation the statements under "Management's Discussion
and Analysis of Financial Condition and Results of Operations" are, or may be
deemed to be, forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act of 1934, as
amended. When used in this Form 10-Q, the words "anticipate," "believe,"
"estimate," "expect," "intends," and similar expressions, as they relate to
Dura, are intended to identify forward-looking statements. Such forward-looking
statements are based on the beliefs of Dura's management as well as on
assumptions made by and information currently available to Dura at the time such
statements were made. Various economic and competitive factors could cause
actual results to differ materially from those discussed in such forward-looking
statements, including factors which are outside the control of Dura, such as
risks relating to: (i) the degree to which Dura is leveraged; (ii) Dura's
reliance on major customers and selected models; (iii) the cyclicality and
seasonality of the automotive market; (iv) the failure to realize the benefits
of recent acquisitions and joint ventures; (v) obtaining new business on new and
redesigned models; (vi) Dura's ability to continue to implement its acquisition
strategy; and (vii) the highly competitive nature of the automotive supply
industry. All subsequent written and oral forward-looking statements
attributable to Dura or persons acting on behalf of Dura are expressly qualified
in their entirety by such cautionary statements.

                                      -27-
<PAGE>   28
                           PART II. OTHER INFORMATION

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

Item 1.  Legal Proceedings:

         Other than as reported in Dura's 1999 Annual Report on Form 10-K under
         the caption "Legal Proceedings," Dura is not currently a party to any
         material pending legal proceedings, other than routine matters
         incidental to the business.

         In the second quarter of 2000, Dura settled two product recall issues
         through a cost sharing agreement with a significant customer. As a
         result of this agreement, Dura recorded a one-time pretax charge to
         operations of $16.0 million to cover amounts not previously reserved.
         These recalls were announced in the first half of 1999 and involved
         concerns associated with Trident Automotive plc (Trident) speed control
         cables and a secondary hood latch. Dura acquired Trident in April of
         1998.

Item 2.  Change in Securities:

         None

Item 3.  Defaults Upon Senior Securities:

         None

Item 4.  Submission of Matters to a Vote of Security Holders:

         None

Item 5.  Other Information:

         None

Item 6.  Exhibits and Reports on Form 8-K:

         None

                                      -28-
<PAGE>   29
                                    SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                  DURA AUTOMOTIVE SYSTEMS, INC.


Date:  November 14, 2000          By /s/ William Ohrt
                                     ----------------
                                     William Ohrt
                                     Vice President, Chief Financial Officer
                                     (principal accounting and financial
                                     officer)

                                      -29-
<PAGE>   30
                                 EXHIBIT INDEX
                                 -------------

<TABLE>
<CAPTION>
Exhibit No.              Description
-----------              -----------
<S>                      <C>
   27                    Financial Data Schedule
</TABLE>