<PAGE>

                               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, 1998

                                    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                             55042
           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 30, 1998 was 9,013,755 shares. The number of 
shares outstanding of the Registrant's Class B common stock, par value $.01 
per share, at October 30, 1998 was 3,329,303 shares.

<PAGE>

ITEM 1 - FINANCIAL INFORMATION

                DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                                       
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                       
          (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS - UNAUDITED)

<TABLE>
<CAPTION>

                                                   THREE MONTHS ENDED 
                                                      SEPTEMBER 30,
                                                  ----------------------
                                                    1998           1997
                                                  --------       --------
<S>                                               <C>            <C>
Revenues                                          $185,204       $101,862
Cost of sales                                      153,345         86,413
                                                  --------       --------
   Gross profit                                     31,859         15,449
Selling, general and administrative expenses        13,103          7,497
Amortization expense                                 3,128          1,032
                                                  --------       --------
   Operating income                                 15,628          6,920
Interest expense, net                                5,377          2,299
                                                  --------       --------
   Income before provision for income taxes       
     and minority interest                          10,251          4,621
Provision for income taxes                           4,403          1,964
Minority interest - dividends on trust
  preferred securities, net                            599             --
                                                  --------       --------
   Net income                                     $  5,249       $  2,657
                                                  --------       --------
                                                  --------       --------
Basic earnings per share                          $   0.43       $   0.30
                                                  --------       --------
                                                  --------       --------
Diluted earnings per share                        $   0.43       $   0.30
                                                  --------       --------
                                                  --------       --------
</TABLE>


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

                                     -2-

<PAGE>

                DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                                       
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                       
          (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS - UNAUDITED)
                                       

<TABLE>
<CAPTION>
                                                     NINE MONTHS ENDED 
                                                        SEPTEMBER 30,
                                                  -----------------------
                                                    1998           1997
                                                  --------       --------
<S>                                               <C>            <C>
Revenues                                          $498,383       $324,579
Cost of sales                                      413,230        273,309
                                                  --------       --------
   Gross profit                                     85,153         51,270
Selling, general and administrative expenses        33,986         22,972
Amortization expense                                 6,724          2,806
                                                  --------       --------
   Operating income                                 44,443         25,492
Interest expense, net                               14,185          6,152
                                                  --------       --------
   Income before provision for income taxes
     and minority interest                          30,258         19,340
Provision for income taxes                          12,591          8,039
Minority interest - dividends on trust
  preferred securities, net                          1,297             --
                                                  --------       --------
   Income before extraordinary item                 16,370         11,301
Extraordinary item - loss on early
   extinguishment of debt, net                       3,250             --
                                                  --------       --------
   Net income                                     $ 13,120       $ 11,301
                                                  --------       --------
                                                  --------       --------
Basic earnings per share:
   Income before extraordinary item               $   1.61       $   1.28
   Extraordinary item                                 0.32             --
                                                  --------       --------
     Net income                                   $   1.29       $   1.28
                                                  --------       --------
                                                  --------       --------
Diluted earnings per share:
   Income before extraordinary item               $   1.58       $   1.27
   Extraordinary item                                 0.29             --
                                                  --------       --------
     Net income                                   $   1.29       $   1.27
                                                  --------       --------
                                                  --------       --------
</TABLE>

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

                                     -3-

<PAGE>

                DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                                       
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                       
                            (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                  SEPTEMBER 30,   DECEMBER 31,
                    ASSETS                            1998           1997
                    ------                        -------------   ------------
                                                   (UNAUDITED)
<S>                                                <C>            <C>

Current assets:
   Cash and cash equivalents                        $ 13,014       $  4,148
   Accounts receivable, net                          163,270         79,032
   Inventories                                        54,083         30,301
   Other current assets                               43,401         24,800
                                                    --------       --------
    Total current assets                             273,768        138,281
Property, plant and equipment, net                   180,776        101,538
Goodwill and other assets, net                       396,886        160,063
Other assets, net                                     49,026         19,382
                                                    --------       --------
                                                    $900,456       $419,264
                                                    --------       --------
                                                    --------       --------
    LIABILITIES AND STOCKHOLDERS' INVESTMENT
    ----------------------------------------
Current liabilities:
   Current maturities of long-term debt             $  7,906       $  2,241
   Accounts payable                                   91,285         49,153
   Accrued liabilities                               106,351         36,583
                                                    --------       --------
    Total current liabilities                        205,542         87,977
                                                    --------       --------
Long-term debt, net of current maturities            238,771        178,081
Senior subordinated notes                             75,000             --
Other noncurrent liabilities                          99,221         51,498
                                                    --------       --------
    Total noncurrent liabilities                     412,992        229,579
                                                    --------       --------
Mandatorily redeemable convertible trust preferred
 securities                                           55,250             --
Stockholders' investment:
   Preferred stock                                        --             --
   Common stock - Class A                                 90             42
   Common stock - Class B                                 33             46
   Additional paid-in capital                        171,252         63,402
   Retained earnings                                  54,148         41,028
   Cumulative translation adjustment                   1,149         (2,810)
                                                    --------       --------
    Total stockholders' investment                   226,672        101,708
                                                    --------       --------
                                                    $900,456       $419,264
                                                    --------       --------
                                                    --------       --------
</TABLE>

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

                                     -4-

<PAGE>

                DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                                       
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                       
                      (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>

                                                            NINE MONTHS ENDED 
                                                               SEPTEMBER 30,
                                                          ---------------------
                                                             1998        1997
                                                          ---------   ---------
<S>                                                       <C>         <C>
OPERATING ACTIVITIES:
 Net income                                               $  13,120   $ 11,301
 Adjustments to reconcile net income to
  net cash provided by (used in) operating activities -
    Depreciation and amortization                            19,357      9,170
    Extraordinary loss on extinguishment of debt              3,250         --
    Changes in other operating items                        (46,261)   (24,379)
                                                          ---------   --------
 Net cash used in operating activities                      (10,534)    (3,908)
                                                          ---------   --------
INVESTING ACTIVITIES:
 Acquisitions, net of cash acquired                        (190,779)   (64,273)
 Capital expenditures, net                                  (16,426)    (6,157)
 Other, net                                                    (167)        --
                                                          ---------   --------
  Net cash used in investing activities                    (207,372)   (70,430)
                                                          ---------   --------
FINANCING ACTIVITIES:
 Proceeds from borrowing                                    242,188    234,770
 Repayments of debt                                        (177,161)  (156,831)
 Proceeds from issuance of common stock
  and exercise of stock options                             107,441         --
 Proceeds from issuance of preferred securities              52,525         --
 Other, net                                                     444        343
                                                          ---------   --------
  Net cash provided by financing activities                 225,437     78,282
                                                          ---------   --------
EFFECT OF EXCHANGE RATES ON CASH                              1,335       (191)
                                                          ---------   --------
NET INCREASE IN CASH AND CASH EQUIVALENTS                     8,866      3,753
CASH AND CASH EQUIVALENTS:
   Beginning of period                                        4,148      1,667
                                                          ---------   --------
   End of period                                          $  13,014   $  5,420
                                                          ---------   --------
                                                          ---------   --------
</TABLE>

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

                                      -5-

<PAGE>

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

1.  The accompanying condensed consolidated financial statements have been 
prepared by Dura Automotive Systems, Inc. (the "Company"), 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 the opinion of management, necessary for a fair 
presentation of such financial statements.  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.  Although the Company believes that 
the disclosures are adequate to make the information presented not 
misleading, it is suggested that these condensed consolidated financial 
statements be read in conjunction with the audited financial statements and 
the notes thereto included in the Company's 1997 Annual Report.

Revenues and operating results for the three and nine months ended 
September 30, 1998 are not necessarily indicative of the results to be 
expected for the full year.

2.  Inventories consisted of the following (in thousands):

<TABLE>
<CAPTION>

                                       SEPT. 30, 1998    DEC. 31, 1997
                                       --------------    -------------
       <S>                             <C>               <C>
       Raw materials                       $21,844          $15,562
       Work-in-process                      17,213            9,126
       Finished goods                       15,026            5,613
                                           -------          -------
       Total inventories                   $54,083          $30,301
                                           -------          -------
                                           -------          -------
</TABLE>

3.  On June 17, 1998, the Company completed a public offering of 3,100,000 
shares of its Class A common stock at an offering price of $32.75 per share 
("Offering").  Net proceeds to the Company, after underwriting discounts and 
offering expenses, were approximately $95.0 million.  Proceeds from the 
Offering were used to retire outstanding indebtedness.  Certain stockholders 
of the Company converted 1,308,000 shares of Class B common stock of the 
Company into Class A stock and sold such Class A stock concurrent with the 
Offering.  In addition, an employee of the Company exercised an option to 
acquire 5,000 shares of Class A common stock at an exercise price of $14.50 
per share, and sold such Class A shares concurrent with the Offering.  On 
July 1, 1998 the underwriters, pursuant to their over-allotment option, 
purchased an additional 400,000 Class A shares resulting in additional net 
proceeds of approximately $12.4 million to the Company.

4.  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 periods.  Diluted earnings per share include (i) the effects of 
outstanding stock options using the treasury stock method and (ii) the 
conversion of the Preferred Securities from their date of issuance on March 
20, 1998 as follows (in thousands, except per share data):

                                      -6-

<PAGE>

<TABLE>
<CAPTION>

                                                              THREE MONTHS                   NINE MONTHS
                                                             ENDED SEPT. 30,               ENDED SEPT. 30,
                                                          ----------------------        ---------------------
                                                           1998           1997           1998           1997
                                                          -------        -------        -------       -------
<S>                                                       <C>            <C>            <C>           <C>
Net income                                                $ 5,249        $ 2,657        $13,120       $11,301
Dividends on mandatorily redeemable
  convertible preferred securities, net of tax                599             --          1,297            --
                                                          -------        -------        -------       -------
Net income applicable to common
  stockholders - diluted                                  $ 5,848        $ 2,657        $14,417       $11,301
                                                          -------        -------        -------       -------
                                                          -------        -------        -------       -------
Weighted average number of Class A
  common shares outstanding                                 9,000          3,869          6,011         3,842
Weighted average number of Class B
  common shares outstanding                                 3,342          4,940          4,149         4,963
Dilutive effect of outstanding stock options
  after application of the treasury stock
  method                                                       76             65             86            59
Dilutive effect of mandatorily redeemable
  convertible preferred securities, assuming
  conversion                                                1,289             --            912            --
                                                          -------        -------        -------       -------
Diluted shares outstanding                                 13,707          8,874         11,158         8,864
                                                          -------        -------        -------       -------
                                                          -------        -------        -------       -------
Basic earnings per share                                  $  0.43        $  0.30        $  1.29       $  1.28
                                                          -------        -------        -------       -------
                                                          -------        -------        -------       -------
Diluted earnings per share                                $  0.43        $  0.30        $  1.29       $  1.27
                                                          -------        -------        -------       -------
                                                          -------        -------        -------       -------
</TABLE>

5.  In January 1997, the Company acquired all of the outstanding common stock 
of the VOFA Group ("VOFA") for approximately $38.0 million in cash and 
assumed indebtedness, plus contingent payments.  VOFA designs and 
manufactures shifter cables and other light duty cables for the European 
automotive and industrial markets from facilities in Dusseldorf, Gehren and 
Daun, Germany and Barcelona, Spain.

In May 1997, the Company acquired the automotive parking brake business from 
Excel Industries, Inc. for approximately $2.9 million.  The acquisition 
increased the Company's penetration of the parking brake market and expanded 
the Company's relationship with Chrysler.  The pro forma effects of this 
transaction are not material to the Company's results of operations for the 
nine months ended September 30, 1997.

In August 1997, the Company acquired GT Automotive Systems, Inc. ("GT 
Automotive"), for approximately $45.0 million in cash and assumed 
indebtedness, plus contingent payments.  GT Automotive designs and 
manufactures column-mounted shifter systems and turn signal and tilt lever 
assemblies for North American OEMs.  The acquisition of GT Automotive, 
combined with the Company's existing position in console-based shifter 
systems, increased the Company's share of the North American shifter market. 
In addition, the acquisition added Nissan as a customer.

                                      -7-

<PAGE>

In December 1997, the Company purchased approximately 19% of the outstanding 
common stock of Thixotech Inc. ("Thixotech") for approximately $0.5 million. 
The Company also loaned Thixotech an additional $2.8 million pursuant to 
notes which are convertible into additional common stock of Thixotech at the 
Company's option.  If exercised, the Company could own a majority of 
Thixotech.  Thixotech is currently pursuing the development of an alternative 
manufacturing technology for component parts.

In December 1997, the Company acquired REOM Industries (Aust) Pty Ltd. 
("REOM"), an Australian designer and manufacturer of jacks and parking 
brakes, for approximately $3.7 million.  The acquisition added market 
penetration in parking brakes, added a new product (jacks) and established a 
presence in the Pacific Rim.  The pro forma effects of this transaction are 
not material to the Company's results of operations for the nine month period 
ended September 30, 1997.

In March 1998, the Company acquired Universal Tool & Stamping Co., Inc. 
("Universal"), a manufacturer of jacks for the North American automotive 
industry, for approximately $18.0 million.  The acquisition provided the 
Company with a market presence for jacks in North America and added Honda as 
a significant new customer.

In April 1998, the Company acquired all of the outstanding equity interests 
of Trident Automotive plc ("Trident").  Trident had revenues of approximately 
$300 million in 1997, of which 69 percent was derived from sales of cable 
assemblies, principally to the automotive OEM market, and the balance from 
door handle assemblies, lighting and other products.  Approximately 68 
percent of Trident's revenues were generated in North America, 27 percent in 
Europe and the remainder in Latin America.  Trident's operations are 
headquartered in Michigan with manufacturing and technical facilities in 
Michigan, Tennessee, Arkansas, Canada, the United Kingdom, Germany, France 
and Brazil.  Pursuant to the terms of the agreement, the Company acquired all 
of the outstanding equity interests of Trident for total consideration of 
$87.5 million in cash.  In addition, the Company assumed $75.0 million of 
Trident's outstanding 10% Senior Subordinated Notes due 2005.  The Company 
also repaid Trident's outstanding senior indebtedness of approximately $53.0 
million.  The acquisition of Trident was financed with borrowings under a new 
credit facility which is further described in Note 6.

In August 1998, the Company acquired the hinge business ("Hinge") of Tower 
Automotive, Inc. for approximately $37.0 million.  Hinge, which has annual 
revenues of approximately $50.0 million, manufactures automotive hood and 
deck lid hinges.

The acquisitions of GT Automotive, REOM, Universal, Trident and Hinge have 
been accounted for using the purchase method of accounting and, accordingly, 
the assets acquired and liabilities assumed have been recorded at fair value 
as of the dates of acquisition, with the excess purchase price recorded as 
goodwill.  The assets and liabilities have been recorded based upon 
preliminary estimates of fair value.  The Company is further evaluating the 
fair value of certain assets acquired and liabilities assumed.  As a result, 
the final evaluation will likely result in adjustments to the preliminary 
allocations which may result in changes to goodwill.

The accompanying unaudited pro forma condensed results of operations for the 
nine months ended September 30, 1998 give effect to the acquisitions of 
Universal, Trident and Hinge,

                                      -8-

<PAGE>

the Offering and the offering of the Convertible Trust Preferred Securities, 
which is further described in Note 7, as if such transactions had occurred at 
the beginning of the period and exclude the effects of the extraordinary 
loss.  The following unaudited pro forma results of operations for the nine 
months ended September 30, 1997 give effect to the transactions described 
above and the acquisition of GT Automotive as if such transactions had been 
completed at the beginning of the period.  The 1998 results of operations of 
Trident for the period prior to its acquisition date, which are included in 
the unaudited pro forma financial information, reflect pretax charges of 
approximately $3.6 million relating to the recognition of obligations to 
certain Trident customers.  The unaudited pro forma information does not 
purport to represent what the Company's results of operations would actually 
have been if such transactions in fact had occurred at such date or to 
project the Company' results of future operations (in thousands, except per 
share data):

<TABLE>
<CAPTION>
                                                   NINE MONTHS ENDED
                                                     SEPTEMBER 30,
                                                -----------------------
                                                  1998           1997
                                                --------       --------
<S>                                             <C>            <C>
Revenues                                        $645,765       $659,015
                                                --------       --------
                                                --------       --------
Operating income                                $ 49,102       $ 48,108
                                                --------       --------
                                                --------       --------
Net income                                      $ 17,390       $ 18,396
                                                --------       --------
                                                --------       --------
Basic earnings per share                        $   1.41       $   1.50
                                                --------       --------
                                                --------       --------
Basic shares outstanding                          12,299         12,305
                                                --------       --------
                                                --------       --------
Diluted earnings per share                      $   1.41       $   1.48
                                                --------       --------
                                                --------       --------
Diluted shares outstanding                        13,674         13,653
                                                --------       --------
                                                --------       --------
</TABLE>

                                      -9-

<PAGE>

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

<TABLE>
<CAPTION>
                                             SEPTEMBER 30,   DECEMBER 31,
                                                 1998           1997
                                             -------------   ------------
<S>                                           <C>             <C>
Bank Credit Agreement:
  Term loans                                   $ 96,577       $    --
  Revolving credit facilities                   140,449            --
Trident 10% senior subordinated
  notes, due 2005                                75,000             --
Old Bank Credit Agreement                            --        165,158
Other                                             9,651         15,164
                                               --------       --------
                                                321,677        180,322
Less-current maturities                          (7,906)        (2,241)
                                               --------       --------
Total long-term debt                           $313,771       $178,081
                                               --------       --------
                                               --------       --------
</TABLE>

On April 30, 1998 in connection with the acquisition of Trident, the Company 
entered into a new $402.5 million credit agreement ("Credit Agreement").  The 
Credit Agreement provided for revolving credit facilities of $225.0 million, 
term loans of $100.0 million, an acquisition facility of $30.0 million and a 
twelve month interim loan of $47.5 million.  Proceeds from the Offering were 
partially used to retire the interim loan and $3.6 million of the term loans. 
The Credit Agreement has a term of five years and borrowings bear interest at 
the lenders reference rate or the Eurocurrency rate.  The interest rate on 
borrowings outstanding under the Credit Agreement ranged from 4.6% to 8.5% as 
of September 30, 1998.  The Credit Agreement contains various restrictive 
covenants which limit indebtedness, investments, rental obligations and cash 
dividends.  The Credit Agreement also requires the Company to maintain 
certain financial ratios including minimum liquidity and interest coverage. 
The Company was in compliance with the covenants as of September 30, 1998. 
Borrowings under the Credit Agreement are collateralized by the assets of the 
Company.

The Credit Agreement provides the Company 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, 1998, $126.5 million of 
borrowings were denominated in US dollars, $5.3 million of borrowings were 
denominated in Canadian dollars, $2.1 million of borrowings were denominated 
in Australian dollars, $4.2 million of borrowings were denominated in 
Deutsche Marks, and $2.4 million in British pound sterling.

In connection with the termination of the Company's former credit facility 
and the retirement of Trident's pre-acquisition credit facility, the Company 
wrote-off deferred financing costs of approximately $3.3 million, net of 
income taxes.  This charge is reflected as an extraordinary item in the 
accompanying statement of operations.

                                     -10-

<PAGE>

In December 1997, Trident issued $75 million aggregate principal amount 
senior subordinated notes.  The notes bear interest at 10%, payable 
semiannually, and are due in December 2005.

7.  On March 20, 1998, Dura Automotive Systems Capital Trust (the "Issuer"), 
a wholly owned statutory business trust of the Company, completed the 
offering of $55.3 million of its 7-1/2% Convertible Trust Preferred 
Securities ("Preferred Securities"), resulting in net proceeds to the Company 
of approximately $52.6 million.  The Preferred Securities are redeemable, in 
whole or part, on or after March 31, 2001 and all Preferred Securities must 
be redeemed no later than March 31, 2028.  The Preferred Securities are 
convertible, at the option of the holder into Class A common stock of the 
Company at a rate of 0.5831 shares of Class A common stock for each Preferred 
Security, which is equivalent to a conversion price of $42 7/8 per share. The 
net proceeds of the offering were used to repay outstanding indebtedness. 
Dividends on the Preferred Securities, net of the related income tax benefit, 
are reflected as minority interest in the accompanying condensed consolidated 
statements of operations.

No separate financial statements of the Issuer have been included herein. The 
Company does not consider that such financial statements would be material to 
holders of Preferred Securities because (i) all of the voting securities of 
the Issuer are owned, directly or indirectly, by the Company, a reporting 
company under the Exchange Act, (ii) the Issuer has no independent operations 
and exists for the sole purpose of issuing securities representing undivided 
beneficial interests in the assets of the Issuer and investing the proceeds 
thereof in 7 1/2% Convertible Subordinated Debentures due March 31, 2028 
issued by the Company and (iii) the obligations of the Issuer under the 
Preferred Securities are fully and unconditionally guaranteed by the Company.

8.  Effective January 1, 1998, the Company adopted SFAS No. 130, "Reporting 
Comprehensive Income."  This statement established standards for reporting 
and display of comprehensive income and its components.  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 
the Company, comprehensive income represents net income adjusted for foreign 
currency translation adjustments.  Comprehensive income was approximately 
$8.0 million and $2.5 million for the three months ended September 30, 1998 
and 1997, respectively and approximately $15.4 million and $9.9 million for 
the nine months period ended September 30, 1998 and 1997, respectively.

The Financial Accounting Standards Board ("FASB") has issued SFAS No. 131, 
"Disclosures about Segments of an Enterprise and Related Information," 
effective for fiscal years beginning after December 15, 1997.  SFAS No. 131 
requires disclosure of business and geographic segments in the consolidated 
financial statements of the Company.  The Company will adopt SFAS No. 131 in 
1998 and is currently analyzing the impact it will have on the disclosures in 
its financial statements.

The FASB has also issued SFAS No. 132, "Employers' Disclosures about Pensions 
and Other Postretirement Benefits," effective for fiscal years beginning 
after December 31, 1997.  SFAS No. 132 revises certain of the disclosure 
requirements, but does not change the measurement or recognition of those 

                                     -11-

<PAGE>

plans.  The adoption of SFAS No. 132 will result in revised and additional 
disclosures, but will have no effect on the financial position, results of 
operations, or liquidity of the Company.

In June 1998 the FASB issued SFAS No. 133 "Accounting for Derivative 
Instruments and Hedging Activities" effective for years beginning after June 
15, 1999.  SFAS No. 133 establishes accounting and reporting standards 
requiring that every derivative instrument, including certain derivative 
instruments embedded in other contracts, be recorded in the balance sheet as 
either an asset or liability measured at its fair value.  SFAS No. 133 
requires that changes in the derivative's fair value be recognized currently 
in earnings unless specific hedge criteria are met.  Special accounting for 
qualifying hedges allow a derivative's gains or losses to offset related 
results on the hedged item in the income statement and requires that a 
company must formally document, designate and assess the effectiveness of 
transactions that receive hedge accounting.  The Company has not yet 
quantified the impacts of adopting SFAS No. 133 and has not yet determined 
the timing or method of adoption.

9.  Supplemental cash flow information (in thousands):

<TABLE>
<CAPTION>

                              THREE MONTHS ENDED      NINE MONTHS ENDED
                                 SEPTEMBER 30,           SEPTEMBER 30,
                              ------------------      -----------------
                                1998     1997           1998      1997
                               ------   ------         -------   ------
<S>                            <C>      <C>            <C>       <C>
Cash paid for -
  Interest                     $6,407   $2,031         $15,859   $5,552
  Income taxes                  2,398    1,680           9,804    3,974
</TABLE>

                               -12-

<PAGE>

ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 1998 TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997

REVENUES -- Revenues for the three months ended September 30, 1998 increased 
by $83.3 million, or 82%, to $185.2 million from $101.9 million for the three 
months ended September 30, 1997.  The increase in revenues relates primarily 
to the acquisitions of GT Automotive in August 1997, REOM in December 1997, 
Universal in March 1998, Trident in April 1998 and Hinge in August 1998.  The 
increases were partially offset by the effects of a strike at General Motors 
("GM").  The Company estimates the strike at GM decreased revenues by 
approximately $11.3 million for the three months ended September 30, 1998.

COST OF SALES -- Cost of sales for the three months ended September 30, 1998 
increased by $66.9 million, or 77%, to $153.3 million from $86.4 million for 
the three months ended September 30, 1997.  Cost of sales as a percentage of 
revenues for the three months ended September 30, 1998 was 83% compared to 
85% for the three months ended September 30, 1997.  The improvement in gross 
margins is primarily the result of lower costs of purchased materials and 
higher margins from efficiency improvements in acquired operations.

S, G & A EXPENSES -- Selling, general and administrative expenses for the 
three months ended September 30, 1998 increased by $5.6 million to $13.1 
million from $7.5 million for the three months ended September 30, 1997.  The 
increase was due to increased support for worldwide engineering and marketing 
efforts and the acquisition of Trident partially offset by consolidation 
savings realized at GT Automotive.  As a percentage of revenues, selling, 
general and administrative expenses were 7% for both three month periods 
ended September 30, 1998 and 1997.

AMORTIZATION EXPENSE -- Amortization expense increased from $1.0 million for 
the three months ended September 30, 1997 to $3.1 million for the three 
months ended September 30, 1998.  The increase is the result of goodwill 
amortization resulting from the acquisitions of GT Automotive, REOM, 
Universal, Trident and Hinge.

INTEREST EXPENSE -- Interest expense for the three months ended September 30, 
1998 was $5.4 million compared to $2.3 for the three months ended September 
30, 1997.  The increase was due principally to borrowings incurred related to 
the acquisitions of GT Automotive, Trident and Hinge.

INCOME TAXES -- The effective income tax rate was 43% for the three months 
ended September 30, 1998 and 1997.  The effective rates differed from the 
statutory rates as a result of higher foreign tax rates and the effects of 
state taxes and non-deductible goodwill amortization.

MINORITY INTEREST -- Minority interest for the three months ended September 
30, 1998 represents dividends, net of income tax benefits, on the Preferred 
Securities which were issued March 20, 1998.

                                     -13-

<PAGE>

COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 1998 TO THE NINE MONTHS 
ENDED SEPTEMBER 30, 1997

REVENUES -- Revenues for the nine months ended September 30, 1998 increased 
by $173.8 million, or 54%, to $498.4 million from $324.6 million for the nine 
months ended September 30, 1997.  The increase in revenues relates primarily 
to the acquisitions of GT Automotive, Universal, Trident and Hinge.  These 
increases were partially offset by the effects of a strike at GM.  The 
Company estimates the strike at GM decreased revenues by approximately $16.7 
million for the nine months ended September 30, 1998.

COST OF SALES -- Cost of sales for the nine months ended September 30, 1998 
increased by $139.9 million, or 51%, to $413.2 million from $273.3 million 
for the nine months ended September 30, 1997.  Cost of sales as a percentage 
of revenues for the nine months ended September 30, 1998 was 83% compared to 
84% for the nine months ended September 30, 1997. The improvement in gross 
margins is primarily the result of lower costs of purchased materials and 
higher margins from efficiency improvements in acquired operations.

S, G & A EXPENSES -- Selling, general and administrative expenses increased 
by $11.0 million, or 48%, to $34.0 million for the nine months ended 
September 30, 1998 from $23.0 million for the nine months ended September 30, 
1997.  The increase is due primarily to incremental costs from the 
acquisition of GT Automotive and Trident.  As a percentage of revenues, 
selling, general and administrative expenses were 7% for both nine month 
periods September 30, 1998 and 1997.

AMORTIZATION EXPENSE -- Amortization expense increased from $2.8 million for 
the nine months ended September 30, 1997 to $6.7 million for the nine month 
period ended September 30, 1998.  The increase is the result of goodwill 
amortization arising from the acquisition of GT Automotive, REOM, Universal, 
Trident and Hinge.

INTEREST EXPENSE -- Interest expense for the nine months ended September 30, 
1998 was $14.2 million compared to $6.2 million for the nine months ended 
September 30, 1997.  The increase was due principally to borrowings incurred 
related to the acquisitions of GT Automotive, Universal, Trident and Hinge.

INCOME TAXES -- The effective income tax rate was 42% for the nine months 
ended September 30, 1998 and 1997.  The effective rates differed from the 
statutory rates primarily as a result of higher foreign tax rates, state 
taxes and non-deductible goodwill amortization.

MINORITY INTEREST -- Minority interest for the nine months ended September 
30, 1998 represents dividends, net of income tax benefits, on the Preferred 
Securities which were issued on March 20, 1998.

EXTRAORDINARY ITEM -- The extraordinary loss for the nine months ended 
September 30, 1998 represents the write-off, net of income taxes, of deferred 
financing costs related to the Company's former credit facility and 
outstanding indebtedness at Trident on the date of its acquisition.

                                     -14-

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 1998 the Company's bank credit agreement consisted of a 
$355.0 million secured credit facility.  The facility provides for revolving 
credit facilities of $225.0 million, term loans of $100.0 million and an 
acquisition facility of $30.0 million.  The facilities have terms of five 
years and bear interest at the lender's reference rate or Eurocurrency rate.  
The credit facilities contain various restrictive covenants which limit 
additional indebtedness, investments, rental obligations and cash dividends.  
The credit facilities also require the Company to maintain certain financial 
ratios including minimum liquidity and interest coverage.  Borrowings are 
collateralized by the assets of the Company.

In January 1997, the Company acquired all of the outstanding common stock of 
VOFA for approximately $38.0 million in cash and assumed indebtedness, plus 
contingent payments.  VOFA designs and manufactures shifter cables and other 
light duty cables for the European automotive and industrial markets from 
facilities in Dusseldorf, Gehren and Daun, Germany and Barcelona Spain

In May 1997, the Company acquired the automotive parking brake business from 
Excel Industries, Inc. for approximately $2.9 million.  The acquisition 
increased the Company's penetration of the parking brake market and expanded 
the Company's relationship with Chrysler.

In August 1997, the Company acquired GT Automotive for approximately $45.0 
million in cash and assumed indebtedness, plus contingent payments.  GT 
Automotive designs and manufactures column-mounted shifter systems and turn 
signal and tilt lever assemblies for North American OEMs.  The acquisition of 
GT Automotive, combined with the Company's existing position in console-based 
shifter systems, increased the Company's share of the North American shifter 
market.  In addition, the acquisition added Nissan as a customer.

In December 1997, the Company purchased approximately 19% of the outstanding 
common stock of Thixotech for approximately $0.5 million.  The Company also 
loaned Thixotech an additional $2.8 million pursuant to notes which are 
convertible into additional common stock of Thixotech at the Company's 
option. If exercised, the Company could own a majority of Thixotech.  
Thixotech is currently pursuing the development of an alternative 
manufacturing technology for component parts.

In December 1997, the Company acquired REOM, an Australian designer and 
manufacturer of jacks and parking brakes, for approximately $3.7 million.  
The acquisition added market penetration in parking brakes, added a new 
product (jacks) and established a presence in the Pacific Rim.

In March 1998, the Company acquired Universal, a manufacturer of jacks for 
the North American automotive industry, for approximately $18.0 million.  The 
acquisition provided the Company with a market presence for jacks in North 
America and added Honda as a significant new customer.

In April 1998, the Company completed its acquisition of Trident.  Trident had 
revenues of approximately $300 million in 1997, of which 69 percent was 
derived from sales of cable assemblies, principally to the automotive OEM 
market, and the balance from door handle assemblies, lighting and other 
products. Approximately 68 percent of Trident's revenues were

                                     -15-

<PAGE>

generated in North America, 27 percent in Europe and the remainder in Latin 
America.  Trident's operations are headquartered in Michigan with 
manufacturing and technical facilities in Michigan, Tennessee, Arkansas, 
Canada, the United Kingdom, Germany, France and Brazil.  Trident is a wholly 
owned indirect subsidiary of the Company. Pursuant to the terms of the 
agreement, the Company acquired all of the outstanding equity interests of 
Trident for total consideration of $87.5 million in cash.  In addition, the 
Company assumed $75 million of Trident's outstanding 10% Senior Subordinated 
Notes due 2005.  The Company also repaid Trident's outstanding senior 
indebtedness of approximately $53 million.

In August 1998, the Company acquired the hinge business of Tower Automotive, 
Inc. for approximately $37.0 million.  Hinge, which has annual revenues of 
approximately $50.0 million manufactures automotive hood and deck lid hinges.

On March 20, 1998, Dura Automotive Systems Capital Trust (the "Issuer"), a 
wholly owned statutory business trust of the Company, completed the offering 
of $55.3 million of its 7 1/2% Convertible Trust Preferred Securities 
("Preferred Securities"), resulting in net proceeds of approximately $52.6 
million.  The Preferred Securities are redeemable, in whole or part, on or 
after March 31, 2001 and all Preferred Securities must be redeemed no later 
than March 31, 2028.  The Preferred Securities are convertible, at the option 
of the holder into Class A common stock of the Company at a rate of 0.5831 
shares of Class A common stock for each Preferred Security, which is 
equivalent to a conversion price of $42 7/8 per share.  The net proceeds of 
the offering were used to repay outstanding indebtedness.  Dividends on the 
Preferred Securities, net of the related income tax benefit, are reflected as 
minority interest in the condensed consolidated statement of operations.

On June 17, 1998, the Company completed a public offering of 3,100,000 shares 
of its Class A common stock at an offering price of $32.75 per share 
("Offering").  Net proceeds to the Company, after underwriting discounts and 
offering expenses, were approximately $95 million and were used to retire 
outstanding indebtedness.  Certain stockholders of the Company converted 
1,308,000 shares of Class B common stock of the Company into Class A stock 
and sold such Class A stock concurrent with the Offering.  In addition, an 
employee of the Company exercised an option to acquire 5,000 shares of Class 
A common stock at an exercise price of $14.50 per share, and sold such Class 
A shares concurrent with the Offering.  On July 1, 1998 the underwriters, 
pursuant to their over allotment option, purchased an additional 400,000 
Class A shares from the Company resulting in net proceeds of approximately 
$12.4 million to the Company.

During the nine months ended September 30, 1998, the Company used cash in 
operations of $10.5 million, compared to $3.9 million in 1997.  Cash 
generated from operations before changes in working capital items was $35.7 
million for the nine months ended September 30, 1998 compared to $20.5 
million for the nine months ended September 30, 1997.  Increases in working 
capital used cash of $46.3 million in 1998 compared to $24.4 million in 1997. 
 The increases in working capital is primarily the result of the timing of 
cash receipts and cash payments.

Net cash used in investing activities was $207.4 million for the nine months 
ended September 30, 1998 as compared to $70.4 million in 1997.  Net capital 
expenditures totaled $16.4 million for the nine months ended September 30, 
1998 primarily for equipment and dedicated tooling purchases related to new 
or replacement programs with an additional $190.8

                                     -16-

<PAGE>

million used for the acquisitions of Universal, Trident and Hinge.  This 
compares with net capital expenditures of $6.2 million in 1997 and $64.3 
million spent on the acquisitions of VOFA, GT Automotive and REOM.

Net cash provided by financing activities totaled $225.4 million for the nine 
months ended September 30, 1998 compared with $78.3 million in 1997. 
Approximately $65.0 million of cash was provided through net borrowings.  In 
addition, the Company received $52.5 million of net proceeds from the 
issuance of the Preferred Securities in March 1998 and $107.4 million of net 
proceeds from the issuance of common stock in June and July 1998.

At September 30, 1998, the Company had unused borrowing capacity of $114.6 
million, under its most restrictive debt covenant.  The Company 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.  The 
Company estimates its 1999 capital expenditures will approximate $32.0 
million.  Under present conditions, management does not believe access to 
funds will restrict its ability to pursue its acquisition strategy.

EFFECTS OF INFLATION

Inflation potentially affects the Company in two principal ways.  First, a 
portion of the Company'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, the Company has limited ability to 
pass through inflation-related cost increases due to the competitive nature 
of the markets that the Company serves.  In the past few years, however, 
inflation has not been a significant factor for the Company.

FOREIGN CURRENCY TRANSACTIONS

A significant portion of the Company's revenues are derived from 
manufacturing operations in Europe, Latin America and Canada.  The results of 
operations and the financial position of the Company'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 the Company's assets are also 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, the Company's consolidated stockholders' investment will 
fluctuate depending upon the weakening or strengthening of the U.S. dollar 
against the respective foreign currency.

                                     -17-

<PAGE>

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

YEAR 2000

The Company is currently working to resolve the potential impact of the year 
2000 on the processing of time-sensitive information by the Company's 
computerized information systems.  Any of the Company's programs that have 
time-sensitive software may recognize the year "00" as 1900 rather than the 
year 2000.  This could result in miscalculations, classification errors or 
system failures.

While the Company's various operations are at different stages of Year 2000 
readiness, the Company has nearly completed its global compliance review.  Based
on the information available to date, the Company does not anticipate any 
significant readiness problems with respect to its systems.

Most of the Company's facilities have completed the inventory and assessment 
of their internal information technology ("IT") and non-IT systems (including 
business, operating and factory floor systems) and are working on remediation, 
as appropriate, for these systems.  Those facilities that have not yet completed
this assessment process are expected to be finished by the end of 1998.  The 
remediation may include repair, replacement, or upgrading, of specific systems 
and components, with priorities based on a business risk assessment.  The 
Company expects that remediation activities for its internal systems will be 
completed during the second quarter of 1999, and contingency plans, as needed, 
before the end of the year.

The most reasonable likely worst case scenario that the Company currently 
anticipates with respect to Year 2000 is the failure of some of its 
suppliers, including utilities suppliers, to be ready.  This could cause a 
temporary interruption of materials or services that the Company needs to 
make its products, which could result in delayed shipments to customers and 
lost sales and profits for the Company.  As the critical supplier assessments 
are completed, the Company will develop contingency plans, as necessary, to 
address the risks which are identified.  Although such plans have not been 
developed yet, they might include resourcing materials or building inventory 
banks.

The Company has spent approximately $1.5 million on Year 2000 activities to 
date and anticipates that it will incur additional future costs not to exceed 
$5.0 million in total in addressing Year 2000 issues.

The outcome of the Company's Year 2000 program is subject to a number of 
risks and uncertainties, some of which (such as the availability of qualified 
computer personnel and the Year 2000 responses of third parties) are beyond 
its control. Therefore, there can be no assurances that the Company will not 
incur material remediation costs beyond the above anticipated future costs, 
or that the Company's business, financial condition, or results of operations 
will not be significantly impacted if Year 2000 problems with its systems, or 
with the products or systems of other parties with whom it does business, are 
not resolved in a timely manner.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board ("FASB") has released SFAS No. 131, 
"Disclosures about Segments of an Enterprise and Related Information," 
effective for fiscal years beginning after December 15, 1997.  SFAS No. 131 
requires disclosure of business and geographic segments in the consolidated 
financial statements of the Company.  The Company will adopt SFAS No. 131 in 
1998 and is currently analyzing the impact it will have on the disclosures in 
its financial statements.

The FASB issued SFAS No. 132, "Employers' Disclosures about Pensions and 
Other Postretirement Benefits," effective for fiscal years beginning after 
December 31, 1997.  SFAS No. 132 revises certain of the disclosure 
requirements, but does not change the measurement or recognition of those 
plans.  The adoption of SFAS No. 132 will result in revised and additional 
disclosures, but will have no effect on the financial position, results of 
operations, or liquidity of the Company.

In September 1998 the FASB issued SFAS No. 133 "Accounting for Derivative 
Instruments and Hedging Activities" effective for years beginning after June 
15, 1999.  SFAS No. 133 establishes accounting and reporting standards 
requiring that every derivative instrument, including certain derivative 
instruments embedded in other contracts be recorded in the balance sheet as 
either an asset or liability measured at its fair value.  SFAS No. 133 
requires that changes in the derivative's fair value be recognized currently 
in earnings unless specific hedge criteria are met.  Special accounting for 
qualifying hedges allow a derivative's gains or losses to offset related 
results on the hedged item in the income statement and requires that a 
company must formally document, designate and assess the effectiveness of 
transactions that receive hedge accounting.  The Company has not yet 
quantified the impacts of adopting SFAS No. 133 and has not yet determined 
the timing or method of adoption.

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 the Company, are intended to identify 
forward-looking statements.  Such forward-looking statements are based on the 
beliefs of the Company's management as well as on assumptions made by and 
information currently available to the Company 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 the Company, 
such as risks relating to: (i) the degree to which the Company is leveraged; 
(ii) the Company'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) the Company'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 the Company or persons 
acting on behalf of the Company are expressly qualified in their entirety by 
such cautionary statements.

                                     -18-

<PAGE>

                          PART II.  OTHER INFORMATION
                                       
                DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

Item 1.   Legal Proceedings:

          Other than as reported in the Company's 1997 Annual Report on Form 
          10-K under the caption "Legal Proceedings," the Company is not 
          currently a party to any material pending legal proceedings, other 
          than routine matters incidental to the business of the Company.

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:

          (a)  Exhibits:

               27.1 Financial Data Schedule

          (b)  Reports on Form 8-K:

               On August 26, 1998 the Company filed a Form 8-K/A which amended
               its Form 8-K filed May 14, 1998 relating to the April 30, 1998 
               acquisition of Trident Automotive plc.


                                     -19-

<PAGE>

                                   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 13, 1998      By /s/ Stephen E.K. Graham
                                 ---------------------------------------
                                 Stephen E.K. Graham
                                 Vice President, Chief Financial Officer
                                 (principal accounting and financial
                                 officer)



                                     -20-