<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 June 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                  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 July 31, 1998 was 8,996,417 shares.  The number of
shares outstanding of the Registrant's Class B common stock, par value $.01 per
share, at July 31, 1998 was 3,342,380 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 June 30,
                                                ---------------------------
                                                     1998           1997
                                                  ----------     ----------
<S>                                               <C>            <C>
Revenues                                          $  187,433     $  115,350

Cost of sales                                        155,414         96,111
                                                  ----------     ----------
     Gross profit                                     32,019         19,239

Selling, general and administrative expenses          11,723          7,579

Amortization expense                                   2,345            891
                                                  ----------     ----------

     Operating income                                 17,951         10,769

Interest expense, net                                  5,870          1,957
                                                  ----------     ----------

     Income before provision for income taxes
       and minority interest                          12,081          8,812

Provision for income taxes                             4,914          3,712

Minority interest                                        622        -      
                                                  ----------     ----------

     Income before extraordinary item                  6,545          5,100

Extraordinary item - loss on early 
   extinguishment of debt, net                         3,250          -    
                                                  ----------     ----------

     Net income                                   $    3,295     $    5,100
                                                  ----------     ----------
                                                  ----------     ----------


Basic earnings per share:
     Income before extraordinary item             $     0.70     $     0.58
     Extraordinary item                                (0.35)           -  
                                                  ----------     ----------

     Net income                                   $     0.35     $     0.58
                                                  ----------     ----------
                                                  ----------     ----------

Diluted earnings per share:
     Income before extraordinary item             $     0.67     $     0.58
     Extraordinary item                                (0.30)           -  
                                                  ----------     ----------

     Net income                                   $     0.37     $     0.58
                                                  ----------     ----------
                                                  ----------     ----------
</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>
                                                   Six Months Ended June 30,
                                                  ---------------------------
                                                     1998           1997
                                                  ----------     ----------
<S>                                               <C>            <C>
Revenues                                          $  313,179     $  222,717

Cost of sales                                        259,885        186,896
                                                  ----------     ----------
     Gross profit                                     53,294         35,821

Selling, general and administrative expenses          20,883         15,475

Amortization expense                                   3,596          1,774
                                                  ----------     ----------

     Operating income                                 28,815         18,572

Interest expense, net                                  8,808          3,853
                                                  ----------     ----------

     Income before provision for income taxes
        and minority interest                         20,007         14,719

Provision for income taxes                             8,188          6,075

Minority interest                                        698              -
                                                  ----------     ----------

     Income before extraordinary item                 11,121          8,644

Extraordinary item - loss on early 
   extinguishment of debt, net                         3,250              -
                                                  ----------     ----------

     Net income                                   $    7,871     $    8,644
                                                  ----------     ----------
                                                  ----------     ----------


Basic earnings per share:
     Income before extraordinary item                $  1.23          $0.98
     Extraordinary item                                (0.36)          -   
                                                  ----------     ----------

        Net income                                   $  0.87          $0.98
                                                  ----------     ----------
                                                  ----------     ----------

Diluted earnings per share:
     Income before extraordinary item                $  1.20          $0.98
     Extraordinary item                                (0.33)             -
                                                  ----------     ----------

        Net income                                   $  0.87          $0.98
                                                  ----------     ----------
                                                  ----------     ----------
</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>
                                                    June 30,     December 31,
              Assets                                  1998           1997
----------------------------------------------    ----------     ------------
                                                          (unaudited)
<S>                                                <C>            <C>
Current assets:
     Cash and cash equivalents                     $  14,289      $   4,148
     Accounts receivable                             147,642         79,032
     Inventories                                      43,869         30,301
     Other current assets                             32,876         24,800
                                                   ---------      ---------
          Total current assets                       238,676        138,281

Property, plant and equipment, net                   162,378        101,538

Goodwill, net                                        376,983        160,063

Deferred income taxes and other assets, net           48,435         19,382
                                                   ---------      ---------
                                                   $ 826,472      $ 419,264
                                                   ---------      ---------
                                                   ---------      ---------

Liabilities and Stockholders' Investment
-------------------------------------------------
Current liabilities:
     Current maturities of long-term debt          $   4,816      $   2,241
     Accounts payable                                 83,355         49,153
     Accrued liabilities                              84,135         36,583
                                                   ---------      ---------
          Total current liabilities                  172,306         87,977

Long-term debt, net of current maturities            282,382        178,081
Other noncurrent liabilities                         112,525         51,498
                                                   ---------      ---------

Mandatorily redeemable convertible trust 
   preferred securities                               55,250              -

Stockholders' investment:
     Preferred stock                                       -              -
     Common stock - Class A                               86             42
     Common stock - Class B                               33             46
     Additional paid-in capital                      158,621         63,402
     Retained earnings                                48,899         41,028
     Cumulative translation adjustment                (3,630)        (2,810)
                                                   ---------      ---------
          Total stockholders' investment             204,009        101,708
                                                   ---------      ---------
                                                   $ 826,472      $ 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>
                                                     Six Months Ended June 30,
                                                     -------------------------
                                                          1998        1997
                                                       ----------  ---------
<S>                                                    <C>         <C>
OPERATING ACTIVITIES:
     Net income                                          $  7,871  $  8,644
     Adjustments to reconcile net income to
       net cash provided by (used in) operating 
       activities -
          Depreciation and amortization                    11,135     6,826
          Extraordinary loss on extinguishment of debt      3,250      -   
          Changes in other operating items                (27,017)   (9,505)
                                                         --------  --------
     Net cash provided by (used in) operating activities   (4,761)    5,965
                                                         --------  --------

INVESTING ACTIVITIES:
     Acquisitions, net of cash acquired                  (153,458)  (21,181)
     Capital expenditures, net                            (10,061)   (5,227)
     Other, net                                              (221)     -   
                                                         --------  --------
          Net cash used in investing activities          (163,740)  (26,408)
                                                         --------  --------

FINANCING ACTIVITIES:
     Proceeds from borrowings                             185,803   138,225
     Repayment of debt                                   (153,844) (108,675)
     Proceeds from issuance of common stock
       and exercise of stock options                       95,006       -  
     Proceeds from issuance of preferred securities        52,525       -  
     Other, net                                               244       220
                                                         --------  --------

          Net cash provided by financing activities       179,734    29,770
                                                         --------  --------

EFFECT OF EXCHANGE RATES ON CASH                           (1,092)     (215)
                                                         --------  --------

NET INCREASE IN CASH AND CASH EQUIVALENTS                  10,141     9,112

CASH AND CASH EQUIVALENTS:
     Beginning of period                                    4,148     1,667
                                                         --------  --------

     End of period                                       $ 14,289  $ 10,779
                                                         --------  --------
                                                         --------  --------
</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 to Stockholders.

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

          Inventories consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                       Jun. 30, 1998  Dec. 31, 1997
                                       -------------  -------------
<S>                                     <C>           <C>
               Raw materials            $    21,467    $  15,562
               Work-in-process               14,414        9,126
               Finished goods                 7,988        5,613
                                        -----------    ---------
                                        $    43,869    $  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.

                                          -6-

<PAGE>

     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):

<TABLE>
<CAPTION>
                                                     Three Months                   Six Months
                                                    Ended June 30,                Ended June 30,
                                               -----------------------       -----------------------
                                                 1998           1997           1998           1997
                                               --------       --------       --------       --------
<S>                                            <C>            <C>            <C>            <C>
     Net income                                $  3,295       $  5,100       $  7,871       $  8,644
     Dividends on mandatorily redeemable
       convertible preferred securities, 
       net of tax                                   622              -            698              -
                                               --------       --------       --------       --------
     Net income applicable to common
       stockholders - diluted                  $  3,917       $  5,100       $  8,569       $  8,644
                                               --------       --------       --------       --------
                                               --------       --------       --------       --------

     Weighted average number of Class A
       common shares outstanding                  4,859          3,842          4,516          3,828
     Weighted average number of Class B
       common shares outstanding                  4,452          4,963          4,553          4,975
     Dilutive effect of outstanding stock 
       options after application of the 
       treasury stock method                        114             58             92             57
     Dilutive effect of mandatorily 
       redeemable convertible preferred 
       securities, assuming conversion            1,289              -            723            -  
                                               --------       --------       --------       --------

     Diluted shares outstanding                  10,714          8,863          9,884          8,860
                                               --------       --------       --------       --------
                                               --------       --------       --------       --------

     Basic earnings per share                   $  0.35        $  0.58          $0.87        $  0.98
                                               --------       --------       --------       --------
                                               --------       --------       --------       --------

     Diluted earnings per share                 $  0.37        $  0.58          $0.87        $  0.98
                                               --------       --------       --------       --------
                                               --------       --------       --------       --------
</TABLE>

     5.   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 six months ended June 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 six month period ended June 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 million
          of Trident's outstanding 10% Senior Subordinated Notes due 2005.  The
          Company also repaid Trident's outstanding senior indebtedness of
          approximately $53 million.  The acquisition of Trident was financed
          with borrowings under a new credit facility which is further described
          in Note 6.

          The acquisitions of GT Automotive, REOM, Universal and Trident 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.

                                          -8-

<PAGE>

          The accompanying unaudited pro forma condensed results of operations
          for the six months ended June 30, 1998 give effect to the acquisitions
          of Universal and Trident, 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 six months
          ended June 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>
                                                  Six Months Ended June 30,
                                                  --------------------------
                                                      1998           1997
                                                  ----------     ----------
<S>                                               <C>            <C>
               Revenues                           $  425,570     $  435,127
                                                  ----------     ----------
                                                  ----------     ----------

               Operating income                       31,446     $   35,218
                                                  ----------     ----------
                                                  ----------     ----------

               Net income                         $   11,585     $   14,952
                                                  ----------     ----------
                                                  ----------     ----------

               Basic earnings per share           $     0.92     $     1.22
                                                  ----------     ----------
                                                  ----------     ----------

               Basic shares outstanding               12,264         12,303
                                                  ----------     ----------
                                                  ----------     ----------

               Diluted earnings per share         $     0.92     $     1.19
                                                  ----------     ----------
                                                  ----------     ----------

               Diluted shares outstanding             13,658         13,649
                                                  ----------     ----------
                                                  ----------     ----------
</TABLE>


                                        -9-

<PAGE>

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

<TABLE>
<CAPTION>
                                                   June 30,        December 31,
                                                     1998             1997
                                                   ---------       -----------
<S>                                                <C>             <C>
               Bank Credit Agreement:
               Term loans                          $  96,384     $        -
               Revolving credit facilities           106,182              -

               Trident 10% senior subordinated
               notes, due 2005                        75,000              -

               Old Bank Credit Agreement                   -        165,158

               Other                                   9,632         15,164
                                                  ----------     ----------
                                                     287,198        180,322

               Less-current maturities                (4,816)        (2,241)
                                                  ----------     ----------
               Total long-term debt               $  282,382     $  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 million, term loans of $100 million, an acquisition
          facility of $30 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 6.875%
          to 8.625% as of June 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 June 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 June 30,
          1998, $93.5 million of borrowings were denominated in US dollars, $5.5
          million of borrowings were denominated in Canadian dollars, $2.0
          million of borrowings were denominated in Australian dollars, $3.9
          million of borrowings were denominated in Deutsche Marks, and $1.3
          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 $3.3 million and $4.0 million for the three months ended
          June 30, 1998 and 1997, respectively and approximately $7.4 million
          for each of the six month periods ended June 30, 1998 and 1997.

     9.   During February 1998, the Financial Accounting Standards Board (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.  SFAS No. 132 superceded SFAS No. 106,
          "Employers' Accounting for Postretirement Benefits Other Than
          Pensions."  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,

                                    -11-

<PAGE>

          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.

     10.  Supplemental cash flow information (in thousands):

<TABLE>
<CAPTION>
                                       Three Months Ended    Six Months Ended
                                            June 30,             June 30,
                                       ------------------   ----------------
                                        1998      1997      1998      1997
                                     --------  --------  --------  --------
<S>                                  <C>       <C>       <C>       <C>
     Cash paid for -
       Interest                      $  6,393  $  2,248  $  9,452  $  3,521
       Income taxes                     4,996     2,019     7,406     2,294
</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 JUNE 30, 1998 TO THE THREE MONTHS ENDED
JUNE 30, 1997

REVENUES  --  Revenues for the three months ended June 30, 1998 increased by
$72.0 million, or 62%, to $187.4 million from $115.4 million for the three
months ended June 30, 1997.  The increase in revenues is primarily the result of
the acquisitions of GT Automotive in August 1997, REOM in December 1997
Universal in March 1998 and Trident in April 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 $7 million.

COST OF SALES  --  Cost of sales for the three months ended June 30, 1998
increased by $59.3 million, or 62%, to $155.4 million from $96.1 million for the
three months ended June 30, 1997.  Cost of sales as a percentage of revenues for
the three months ended June 30, 1998 was 82.9% compared to 83.3% for the three
months ended June 30, 1997.  The improvement in gross margins is primarily the
result of improved productivity at the Company's floor shifter operations offset
by the effects of the strike at GM.

S, G & A EXPENSES  --  Selling, general and administrative expenses were $11.7
million for the three months ended June 30, 1998 compared to $7.6 million for
the three months ended June 30, 1997.  The increase was due to increased support
for worldwide engineering and marketing efforts and the acquisitions of GT
Automotive and Trident.  These increases were partially offset by consolidation
savings realized at KPI, VOFA and GT Automotive.  As a percentage of revenues,
selling, general and administrative expenses were 6.3% for the three months
ended June 30, 1998 compared to 6.5% for the three months ended June 30, 1997.

INTEREST EXPENSE  --  Interest expense for the three months ended June 30, 1998
was $5.9 million compared to $2.0 million for the three months ended June 30,
1997.  The increase was due principally to borrowings incurred related to the
acquisitions of GT Automotive, Universal and Trident.

INCOME TAXES  --  The effective income tax rate was 40.7% for the three months
ended June 30, 1998 and 42.1% for the three months ended June 30, 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 June 30,
1998 represent dividends, net of income tax benefits, on the Preferred
Securities which were issued on March 20, 1998.

EXTRAORDINARY ITEM  --  The extraordinary loss for the three months ended June
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.

                                -13-

<PAGE>

COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1998 TO THE SIX MONTHS ENDED 
JUNE 30, 1997

REVENUES  --  Revenues for the six months ended June 30, 1998 increased by $90.5
million, or 41%, to $313.2 million from $222.7 million for the six months ended
June 30, 1997.  The increase in revenues is primarily the result of the
acquisitions of GT Automotive in August 1997, REOM in December 1997, Universal
in March 1998 and Trident in April 1998.  The increase was partially offset by
the strike at GM.

COST OF SALES  --  Cost of sales for the six months ended June 30, 1998
increased by $73.0 million, or 39%, to $259.9 million from $186.9 million for
the six months ended June 30, 1997.  Cost of sales as a percentage of revenues
for the six months ended June 30, 1998 was 83.0% compared to 83.9% for the six
months ended June 30, 1997.  The improvement in gross margins is primarily the
result of improved productivity at the Company's floor shifter operations, which
was acquired in December 1996.

S, G & A EXPENSES  --  Selling, general and administrative expenses were $20.9
million for the six months ended June 30, 1998 compared to $15.5 million for the
six months ended June 30, 1997.  The increase was due to increased support for
worldwide engineering and marketing efforts and the acquisitions of GT
Automotive and Trident.  These increases were partially offset by consolidation
savings realized at KPI, VOFA and GT Automotive.  As a percentage of revenues,
selling, general and administrative expenses were 6.7% for the six months ended
June 30, 1998 compared to 7.0% for the six months ended June 30, 1997.

INTEREST EXPENSE  --  Interest expense for the six months ended June 30, 1998
was $8.8 million compared to $3.9 for the six months ended June 30, 1997.  The
increase was due principally to borrowings incurred related to the acquisitions
of GT Automotive, Universal and Trident.

INCOME TAXES  --  The effective income tax rate was 40.9% for the six months
ended June 30, 1998 and 41.3% for the six months ended June 30, 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 six months ended June 30, 1998
represent dividends, net of income tax benefits, on the Preferred Securities
which were issued on March 20, 1998.

EXTRAORDINARY ITEM  --  The extraordinary loss for the six months ended June 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.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 1998 the Company's bank credit agreement consisted of a $351
million secured credit facility.  The facility provides for revolving credit
facilities of $225 million, term loans of $96 million and an acquisition
facility of $30 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 

                                 -14-

<PAGE>

ratios including minimum liquidity and interest coverage.  Borrowings are 
collateralized by the assets of the Company.

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.

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 during April 1998.

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 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 

                                -15-

<PAGE>

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.

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.

The Company believes borrowings under its new credit facility, together with
funds generated by the Company's operations, will provide sufficient liquidity
and capital resources for working capital, capital expenditures and other needs
through 1998.

The Company's principal source of funds has been, and is anticipated to be, its
cash flows from operations.  During the six months ended June 30, 1998, the
Company generated cash from operations of $22.3 million, before the effects of
changes in working capital, compared to $15.5 million in 1997.  The Company
estimates that it will fund approximately $19.0 million in capital expenditures
for the remainder of 1998.  These capital expenditures will be used primarily
for the purchase of machinery and equipment to support new business awards, as
well as to support continued cost reduction efforts.

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.

                                -16-

<PAGE>

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.

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 in the process of replacing and upgrading its computer systems,
which, among other things, will accommodate the year 2000 issues.  The Company
currently expects its computer systems to be fully operational prior to the year
2000 so as not to adversely affect its operations.  During 1998 and 1999, the
Company expects to incur costs of approximately $1.5 million and $2.5 million,
respectively, to make these replacements and upgrades.  Failure of the Company
to make required modifications on a timely basis or the inability of other
companies with which the Company does business to complete their year 2000
modifications on a timely basis, could adversely affect the Company's
operations.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

During June 1997, the Financial Accounting Standards Board released SFAS No.
131, "Disclosures about Segments of an Enterprise and Related Information,"
effective for fiscal years beginning after December 14, 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.

During February 1998, the Financial Accounting Standards Board (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.  SFAS No. 132
superceded SFAS No. 106, "Employers' Accounting for Postretirement Benefits
Other Than Pensions."  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 

                                            -17-

<PAGE>


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.

                                            -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:

     The registrant held its Annual Meeting of Stockholders on May 21, 1998. 
     Proxies for the meeting were solicited pursuant to Regulation 14.  There
     was no solicitation in opposition to management's nominees as listed in the
     Proxy statement, and all such nominees (Robert E. Brooker, Jr., W.H.
     Clement, Jack K. Edwards, Robert R. Hibbs, S.A. Johnson, John C. Jorgensen,
     James L. O'Loughlin, Robert J. Orscheln, William J. Orscheln, Eric J. Rosen
     and Karl F. Storrie) were elected.  Of the 49,465,445 votes, at least
     49,457,793 votes granted authority to vote for these directors and no more
     than 7,602 abstaining votes were cast.

     The retention of Arthur Andersen LLP as auditors was approved by the
     stockholders.  A total of 49,463,460 affirmative votes, 398 negative votes
     and 1,587 abstaining votes were cast.

Item 5.   Other Information:

     None

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

          27   Financial Data Schedule

     (b)  Reports on Form 8-K:

          On May 13, 1998, the Company filed a Form 8-K 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:  August 14, 1998               By /s/ Stephen E.K. Graham
                                        --------------------------
                                        Stephen E.K. Graham
                                        Vice President, Chief Financial Officer
                                        (principal accounting and financial
                                        officer)





                                       -20-