<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, 1996

                                       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 333-06601

                          DURA AUTOMOTIVE SYSTEMS, INC.

             (Exact name of Registrant as specified in its charter)

               DELAWARE                          38-2961431
     (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) 332-2335
              (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                      No  X
                             ---                     ---

The number of shares outstanding of the Registrant's Class A common stock, par
value $.01 per share, at October 15, 1996 was 3,795,000 shares.  The number of
shares outstanding of the Registrant's Class B common stock, par value $.01 per
share, at October 15, 1996 was 4,998,254 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)


                                                Three Months Ended September 30,
                                                --------------------------------
                                                        1996             1995
                                                 -----------------   -----------
                                                               (Note 4)


Revenues                                              $ 57,130         $ 51,426

Cost of sales                                           50,010           45,858
                                                      --------         --------

   Gross profit                                          7,120            5,568

Selling, general and administrative expenses             3,651            3,462

Amortization expense                                       219              273
                                                      --------         --------

   Operating income                                      3,250            1,833

Interest expense, net                                      387            1,135
                                                      --------         --------

   Income before provision for income taxes              2,863              698

Provision for income taxes                               1,117              281
                                                      --------         --------

   Net income                                         $  1,746         $    417
                                                      --------         --------
                                                      --------         --------

   Net income per common and common
     equivalent share                                 $   0.25         $   0.08
                                                      --------         --------
                                                      --------         --------

   Weighted average common and common
     equivalent shares outstanding                       6,955           5,039
                                                      --------         --------
                                                      --------         --------


                     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)


                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                       1996             1995
                                                 ----------------    ----------
                                                               (Note 4)

Revenues                                            $  184,487       $  194,292

Cost of sales                                          159,151          170,588
                                                      --------         --------

   Gross profit                                         25,336           23,704

Selling, general and administrative expenses            11,237           10,207

Amortization expense                                       691              821
                                                      --------         --------

   Operating income                                     13,408           12,676

Interest expense, net                                    2,287            3,766

Gain on sale of window regulator business                    -            4,240
                                                      --------         --------

   Income before provision for income taxes             11,121           13,150

Provision for income taxes                               4,421            5,307
                                                      --------         --------

   Net income                                         $  6,700         $  7,843
                                                      --------         --------
                                                      --------         --------

   Net income per common and common
    equivalent share                                   $  1.18          $  1.58
                                                      --------         --------
                                                      --------         --------

   Weighted average common and common
    equivalent shares outstanding                        5,669            4,976
                                                      --------         --------
                                                      --------         --------


                     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)


                                                   September 30,    December 31,
             Assets                                     1996            1995
---------------------------------------            --------------  -------------
                                                     (unaudited)
Current assets:
   Cash and cash equivalents                          $  6,081         $  1,732
   Accounts receivable, net                             44,351           34,990
   Inventories                                          10,786           11,916
   Other current assets                                  5,871           10,661
                                                  ------------       ----------
     Total current assets                               67,089           59,299

Property, plant and equipment, net                      35,836           36,707

Goodwill and other assets, net                          44,827           44,525
                                                  ------------       ----------

                                                    $  147,752       $  140,531
                                                  ------------       ----------
                                                  ------------       ----------

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

Current liabilities:
   Current maturities of long-term debt                 $  163         $  5,137
   Accounts payable                                     23,719           24,865
   Accrued liabilities                                  20,872           15,596
                                                  ------------       ----------

     Total current liabilities                          44,754           45,598

Long-term debt, net of current maturities                  306           46,639
Other noncurrent liabilities                            18,753           20,611
                                                  ------------       ----------

Stockholders' investment:
   Preferred stock                                          --            --
   Common stock - Class A                                   38            --
   Common stock - Class B                                   50               50
   Additional paid-in capital                           63,061           13,563
   Retained earnings                                    20,958           14,258
   Subscriptions receivable                               (168)            (188)
                                                  ------------       ----------

     Total stockholders' investment                     83,939           27,683
                                                  ------------       ----------

                                                    $  147,752       $  140,531
                                                  ------------       ----------
                                                  ------------       ----------


                     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)


                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                       1996             1995
                                                 ---------------   ------------
OPERATING ACTIVITIES:
   Net income                                         $  6,700         $  7,843
   Adjustments to reconcile net income to
    net cash provided by operating activities-
      Depreciation and amortization                      4,677            4,285
      Deferred income tax provision                      2,218            2,660
      Gain on sale of window regulator business              -           (4,240)
      Changes in other operating items                  (1,169)             886
                                                  ------------       ----------

     Net cash provided by operating activities          12,426           11,434
                                                  ------------       ----------
INVESTING ACTIVITIES:
   Capital expenditures, net                            (3,115)          (3,330)
   Sale of window regulator business, net                    -           18,006
   Other, net                                           (3,211)            (398)
                                                  ------------       ----------
     Net cash provided by (used in)
      investing activities                              (6,326)          14,278
                                                  ------------       ----------

FINANCING ACTIVITIES:
   Net proceeds from Offering                           49,576             -
   Borrowings under revolving credit facility           71,250           63,750
   Repayment of revolving credit facility              (81,000)         (73,000)
   Repayment of long-term debt                         (41,557)         (11,539)
   Other, net                                              (20)             181
                                                  ------------       ----------

     Net cash used in financing activities              (1,751)         (20,608)
                                                  ------------       ----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                  4,349            5,104

CASH AND CASH EQUIVALENTS:
   Beginning of period                                   1,732               17
                                                  ------------       ----------
   End of period                                      $  6,081         $  5,121
                                                  ------------       ----------
                                                  ------------       ----------


                     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 Registration
     Statement on Form S-1 (Registration No. 333-06601).

     Revenues and operating results for the three and nine months ended
     September 30, 1996 are not necessarily indicative of the results to be
     expected for the full year.

2.   On August 14, 1996, the Company completed an initial public offering
     of 3,795,000 shares of its Class A common stock at $14.50 per share (the
     "Offering").  The Company received net proceeds of approximately $50
     million from the Offering.  Net proceeds from the Offering were used to
     repay certain outstanding indebtedness.  Immediately prior to the
     completion of the Offering, the Company's board of directors and
     stockholders approved an Amended and Restated Certificate of Incorporation
     and a recapitalization pursuant to which the outstanding shares of the
     Company's Class A, B and C common stock were exchanged for 4,998,254 shares
     in the aggregate of the Company's new Class B common stock (out of a total
     of 10,000,000 shares of Class B common stock authorized for issuance under
     the Amended and Restated Certificate of Incorporation).  Immediately after
     the consummation of the recapitalization and the Offering, the Company had
     outstanding 8,793,254 shares of common stock.  In addition, the Company has
     options outstanding to purchase 32,045 shares of Class B common stock at an
     exercise price of $1.45 per share.  The accompanying unaudited condensed
     consolidated financial statements have been retroactively restated to give
     effect to the recapitalization as if it had occurred at the beginning of
     the earliest period presented.

     Prior to consummation of the Offering, the board of directors and
     stockholders of the Company approved the 1996 Key Employee Stock Option
     Plan (the "Stock Option Plan").  Certain people who are full-time, salaried
     employees of the Company will be eligible to participate in the Stock
     Option Plan (an "Employee Participant").  A committee of the board of
     directors will select the Employee Participants and determine the terms and
     conditions of the options.  The Stock Option Plan will provide for the
     issuance of options to Employee Participants covering 600,000 shares of
     Class A common stock of the Company, subject to certain adjustments
     reflecting changes in the Company's capitalization.  As of September 30,
     1996, the Company had granted non-qualified stock options to acquire 
     102,373 shares of Class A common stock at an exercise price of $14.50 
     per share and incentive stock options to

                                       -6-
<PAGE>

     acquire 5,761 shares of Class A common stock at an exercise price of 
     $14.50 per share.  The options vest over six months to two years.  As of 
     September 30, 1996, no options were exercisable.

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

                     Sept. 30, 1996     Dec. 31, 1995
                     --------------     -------------

     Raw materials   $    5,095        $   5,841
     Work in process      3,680            3,883
     Finished goods       2,011            2,192
                      ---------          -------
                     $   10,786        $  11,916
                      ---------          -------
                      ---------          -------

4.   On April 2, 1995, the Company sold the net assets of its window
     regulator business to Rockwell International Corporation for approximately
     $18 million in cash, resulting in a pretax gain of approximately $4.2
     million.  The results of operations of the window regulator business have
     been included in the accompanying condensed consolidated financial
     statements through April 2, 1995, the date of divestiture.

     The accompanying unaudited consolidated pro forma results of
     operations for the three and nine months ended September 30, 1996 and 1995
     give effect to the Offering and the divestiture of the window regulator
     business as if they were completed at the beginning of the respective
     periods.  The unaudited pro forma financial information does not purport to
     represent what the Company's results of operations would actually have been
     if such transactions had occurred at such date or to project the Company's
     results of future operations (in thousands, except per share data):


                                       -7-
<PAGE>

                                     Pro Forma Results
                   ---------------------------------------------------------
                       Nine Months Ended            Three Months Ended
                        September 30,                  September 30,
                   ---------------------------    --------------------------
                         1996          1995           1996           1995
                         ----          ----           ----           ----

Revenues            $  184,487     $  180,164     $  57,130      $  51,426
                    ----------     ----------     ---------      ---------
                    ----------     ----------     ---------      ---------

Operating income    $  13,408      $   12,288     $   3,250      $   1,833
                    ----------     ----------     ---------      ---------
                    ----------     ----------     ---------      ---------

Net income          $   8,078      $    6,895     $   1,983      $     941
                    ----------     ----------     ---------      ---------
                    ----------     ----------     ---------      ---------

Weighted average
 common and
 common
 equivalent
 shares
 outstanding            8,818           8,771         8,811         8,834
                    ----------     ----------     ---------      ---------
                    ----------     ----------     ---------      ---------
Net income per
 common and
 common equivalent
 share               $   0.92       $    0.79      $   0.23       $  0.11
                    ----------     ----------     ---------      ---------
                    ----------     ----------     ---------      ---------


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


                                        Sept. 30,         Dec. 31,
                                          1996              1995
                                        ---------        ----------
        Term loan                       $  -           $  37,408
        Revolving credit facility          -               9,750
        Subordinated promissory notes      -               4,000
        Other                              469               618
                                        ---------      ----------
                                             469          51,776
        Less-current maturities             (163)         (5,137)
                                        ---------      ----------
                                        $    306       $  46,639
                                        ---------      ----------
                                        ---------      ----------


          The Company's bank credit agreement consists of a revolving credit
          facility with a committed amount of $30 million subject to eligible
          accounts receivable, inventories and tooling work in process, as
          defined, which exceeded $30 million at September 30, 1996. At
          September 30, 1996, the Company had no borrowings outstanding under
          its revolving credit facility.  The revolving credit facility is
          collateralized by substantially all assets of the Company.  The
          revolving credit facility matures on August 31, 2000 and bears
          interest at the lender's prevailing reference rate plus up to .5% or
          the Eurodollar rate plus .75% to 1.75% at the discretion of the
          Company.  Prior to the Offering, the Company had a $37.4 million term
          loan and $4.0 million in subordinated promissory notes payable to
          stockholders which, along with the revolving credit facility were
          repaid in August 1996 with proceeds from the Offering.  The bank
          credit agreement contains various restrictive covenants, which, among
          other matters, require the Company to maintain certain financial
          ratios, including minimum liquidity, net worth and fixed charge
          coverage.  The bank credit agreement also limits


                                       -8-
<PAGE>
          additional indebtedness, capital expenditures and cash dividends.  The
          Company was in compliance with all such covenants as of September 30,
          1996.

     6.   In August 1996, the Company formed a joint venture with another
          automotive supplier to participate equally in the acquisition of a 26%
          interest in Pollone, S.A., a manufacturer of automotive components and
          mechanical assemblies headquartered in Brazil, for $5 million.  The
          Company has accounted for this investment using the cost method of
          accounting.

     7.   In October 1996, the Company announced the following transactions:

          -    A definitive agreement to acquire all of the outstanding common
               stock of KPI Automotive Group (KPI) from Sparton Corporation for
               approximately $80.5 million in cash.  KPI manufactures shifter
               systems, parking brake mechanisms, brake pedals, underbody spare
               tire carriers and airbag components for the North American
               automotive industry from facilities in Indiana and Michigan.  KPI
               has annual revenues of approximately $95 million.  The Company
               expects the acquisition will be financed by an increase in its
               revolving credit facility.  The Company expects to complete this
               transaction during December of 1996.

          -    A letter of intent to acquire all of the outstanding common stock
               of the VOFA Group (VOFA) for approximately $35 million in cash
               and approximately $10 million in Class A common stock.
               Headquartered in Dusseldorf, Germany, VOFA has manufacturing
               facilities in Dusseldorf, Gehren and Daun, Germany and Barcelona,
               Spain.  VOFA manufactures shifter cables, brake cables and other
               light duty cables for the European automotive and industrial
               markets and has annual revenues of approximately $85 million.
               The Company expects the cash portion of the acquisition will be
               financed by an increase in its revolving credit facility.  The
               Company expects to complete this transaction by the end of
               December 1996.

          -    The acquisition of the parking brake business of Rockwell Light
               Vehicle Systems France S.A. (Rockwell).  Operating from a
               facility in St. Die, France, Rockwell's parking brake business
               has annual revenues of approximately $8 million.  The aggregate
               purchase price of approximately $3.75 million was financed with
               cash on hand.  The pro forma effects of this transaction are not
               material to the Company's results of operations for the three and
               nine month periods ended September 30, 1996.

     8.   Supplemental cash flow information (in thousands):


                            Three Months Ended      Nine Months Ended
                               September 30,           September 30,
                            -------------------   ---------------------
                              1996      1995        1996       1995
                            -------------------   ---------------------
          Cash paid for -
            Interest          $759      $889      $2,908    $3,851
            Income taxes       910       869       1,962     1,524


                                       -9-
<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, 1996 TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1995

REVENUES -- Revenues for the three months ended September 30, 1996 totaled
$57.1 million compared to $51.4 million for the three months ended September 30,
1995, an increase of $5.7 million or 11%.  Revenues for the 1996 period
increased over the 1995 period primarily due to new or incremental production
launches on models served by the Company including Dodge Dakota, Ford Mark VIII
and Expedition, Toyota Previa, Camry and Lexus and General Motors Corvette along
with the benefits of the Chrysler minivan tailgate latch replacement program.
In addition, total production of cars and light trucks in North America
increased approximately 7 percent quarter over quarter.

COST OF SALES -- Cost of sales as a percentage of revenues for the three months
ended September 30, 1996 was 87.5% compared to 89.2% for the three months ended
September 30, 1995.  The increase in gross margin was the result of cost
reduction efforts which continue to focus on flexible cellular manufacturing
methods and business rationalization as well as the impact of the Chrysler latch
replacement program.

S, G & A EXPENSES -- Selling, general and administrative expenses increased
from $3.5 million for the three months ended September 30, 1995 to $3.7 million
for the three months ended September 30, 1996.  The increase was due primarily
to higher up-front design and engineering costs.  As a percentage of revenues,
selling, general and administrative expenses were 6.4% for the three months
ended September 30, 1996 compared to 6.7% for the three months ended September
30, 1995.

INTEREST EXPENSE -- Interest expense for the three months ended September 30,
1996 was $387,000 compared to $1.1 million for the three months ended September
30, 1995.  The decrease was due principally to the application of the proceeds
from the Offering.

INCOME TAXES -- The effective income tax rate was 39.0% for the three months
ended September 30, 1996 and 40.3% for the three months ended September 30,
1995.  The effective rates differed from the statutory rates primarily as a
result of state taxes and non-deductible goodwill amortization.

COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1996 TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1995

REVENUES -- Revenues for the nine months ended September 30, 1996 totaled
$184.5 million compared to $194.3 million for the nine months ended September
30, 1995, a decrease of $9.8 million or 5.0%.  Revenues for the 1996 period
decreased over 1995 due to the divestiture of the window regulator business in
April 1995 (approximately $14.1 million of the decrease) and the decline in
North American automotive production, including the effects of the 17-day work
stoppage at GM in the first quarter of 1996 which adversely impacted the
Company's operations.


                                      -10-
<PAGE>

These decreases were partially offset by new production launches at Chrysler,
Ford, Toyota and General Motors.

COST OF SALES -- Cost of sales as a percentage of revenues for the nine months
ended September 30, 1996 was 86.3% compared to 87.8% for the nine months ended
September 30, 1995.  The improvement in gross margin was the result of the
divestiture of the window regulator business which had lower margins, and the
Company's cost reduction efforts, which included the implementation of more
flexible cellular manufacturing methods and the closing of an under-utilized
manufacturing facility.

S, G & A EXPENSES -- Selling, general and administrative expenses increased
from $10.2 million for the nine months ended September 30, 1995 to $11.2 million
for the nine months ended September 30, 1996.  The increase was due primarily to
costs incurred as a result of providing a greater level of design and
engineering services to the Company's customers, partially offset by the sale of
the window regulator business.  As a percentage of revenues, selling, general
and administrative expenses were 6.1% for the nine months ended September 30,
1996 compared to 5.3% for the nine months ended September 30, 1995.

INTEREST EXPENSE -- Interest expense for the nine months ended September 30,
1996 was $2.3 million compared to $3.8 million for the nine months ended
September 30, 1995.  The decrease was primarily due to the repayment of debt
with the net proceeds from the sale of the window regulator business in April
1995 and the Offering.

INCOME TAXES -- The effective income tax rate was 39.8% for the nine months
ended September 30, 1996 and 40.4% for the nine months ended September 30, 1995.
The effective rates differed from the statutory rates primarily as a result of
state taxes and non-deductible goodwill amortization.

LIQUIDITY AND CAPITAL RESOURCES

On August 14, 1996, the Company completed an initial public offering of
3,795,000 shares of its Class A common stock at a price of $14.50 per share.
The Company realized net proceeds of approximately $50 million from this
offering.

The Company's bank credit agreement consists of a $30 million revolving credit
facility which expires on August 31, 2000.  There was no balance outstanding
under the revolving credit facility as of September 30, 1996.  The Company used
a portion of the proceeds from the Offering to repay a $37.4 million term loan,
the $4 million subordinated notes and the revolving credit facility.  The bank
credit agreement contains various restrictive covenants, which, among other
matters, require the Company to maintain certain financial ratios, including
minimum liquidity, net worth and fixed charge coverage.  The bank credit
agreement also limits additional indebtedness, capital expenditures and cash
dividends.  The Company was in compliance with all such covenants as of
September 30, 1996.

In August 1996, the Company formed a joint venture with another automotive
supplier to participate equally in the acquisition of a 26% interest in Pollone,
S.A., a manufacturer of automotive components and mechanical assemblies
headquartered in Brazil, for $5 million.  The Company has accounted for this
investment using the cost method of accounting.


                                      -11-
<PAGE>

In October 1996, the Company announced the following transactions:

     -    A definitive agreement to acquire all of the outstanding common stock
          of KPI Automotive Group (KPI) from Sparton Corporation for
          approximately $80.5 million in cash.  KPI manufactures shifter
          systems, parking brake mechanisms, brake pedals, underbody spare tire
          carriers and airbag components for the North American automotive
          industry from facilities in Indiana and Michigan.  KPI has annual
          revenues of approximately $95 million.  The Company expects the
          acquisition will be financed by an increase in its revolving credit
          facility.  The Company expects to complete this transaction during
          December 1996.

     -    A letter of intent to acquire all of the outstanding common stock of
          the VOFA Group (VOFA) for approximately $35 million in cash and
          approximately $10 million in Class A common stock.  Headquartered in
          Dusseldorf, Germany, VOFA has facilities in Dusseldorf, Gehren and
          Daun, Germany and Barcelona, Spain.  VOFA manufactures shifter cables,
          brake cables and other light duty cables for the European automotive
          and industrial markets and has annual revenues of approximately $85
          million.  The Company expects the cash portion of the acquisition will
          be financed by an increase in its revolving credit facility.  The
          Company expects to complete this transaction by the end of December
          1996.

     -    The acquisition of the parking brake business of Rockwell Light
          Vehicle Systems France S.A. (Rockwell).  Operating from a facility in
          St. Die, France, Rockwell's parking brake business has annual revenues
          of approximately $8 million.  The aggregate purchase price of
          approximately $3.75 million was financed with cash on hand.  The pro
          forma effects of this transaction are not material to the Company's
          results of operations for the three and nine month periods ended
          September 30, 1996.

Based upon discussions with its principal lender, the Company intends to enter
into a new credit agreement to provide borrowing availability to finance the
acquisitions described above and provide working capital.  The Company
anticipates the new credit agreement will be secured by all assets of the
Company and will generally contain less restrictive covenants and better pricing
terms than its existing facility.

During the nine months ended September 30, 1996, the Company generated cash from
operations of $13.6 million before the effects of changes in working capital
compared to $10.5 million in 1995.  The cash generated from operations was used
to fund capital expenditures of $3.1 million and to reduce outstanding
indebtedness during the nine months ended September 30, 1996.

The Company estimates that it will fund approximately $3.5 million in capital
expenditures for the remaining months of 1996 and $8 million for 1997.  These
funds will be used primarily for the purchase of machinery and equipment to
support new business awards, as well as to finance continued cost reduction
efforts.


                                      -12-
<PAGE>

The Company believes that funds available under a new credit agreement, together
with funds generated by the Company's operations, will provide the Company with
sufficient liquidity and capital resources for working capital, capital
expenditures, financing the previously announced acquisitions and other needs.
However, any additional significant acquisitions may require additional debt or
equity financing.  The Company believes additional financing will be available
from bank lenders, through the issuance of public or private debt securities or
through additional offerings of equity securities.

QUARTERLY RESULTS OF OPERATIONS AND SEASONALITY

The Company typically experiences decreased revenues and operating income during
the third calendar quarter of each year due to production shutdowns at the
automotive manufacturers for model changeovers and vacations.

EFFECTS OF INFLATION

Inflation generally affects the Company by increasing the interest expense of
floating rate indebtedness and by increasing the cost of labor, equipment and
raw materials.  Management believes that inflation has had an effect on the
Company's business over the past 18 months due to rising labor costs and raw
material costs, primarily steel, although at a rate below the producer price
index.  Although certain of the Company's customer contracts provide that
increases in the Company's cost of raw materials in certain circumstances may be
passed through to its customers, prevailing industry practices have not allowed
the Company to pass such costs on to its customers.


                                      -13-
<PAGE>

                           PART II.  OTHER INFORMATION

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES


Item 1.   Legal Proceedings:

          On October 10, 1996, the Company received notice that it is being
          added as defendant in an environmental lawsuit brought by the City of
          Toledo, Ohio relating to the Dura Avenue Landfill site in Toledo. 
          This action was originally filed in 1990 and names approximately 25
          companies as defendants.  The suit seeks recovery of past and future
          cleanup costs relating to the site.  The complaint alleges the Company
          is the successor in interest of Dura Corporation, an entity alleged to
          have disposed of wastes at the landfill prior to 1968.  The Company
          denies that it is the successor to Dura Corporation and will
          vigorously defend the lawsuit.


Item 2.   Change in Securities:

          None

Item 3.   Defaults Upon Senior Securities:

          None

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

          On August 6, 1996, the stockholders of the Company by unanimous
          written consent adopted resolutions to approve and adopt the
          following:

               (i) Key Employee Stock Option Plan; (ii) Employee Stock Discount
               Purchase Plan; (iii) Independent Director Stock Option Plan; 
               (iv) Recapitalization Agreement; (v) Amended and Restated 
               Certificate of Incorporation; (vi) Amended and Restated By-Laws.

Item 5.   Other Information:

          None

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

          (a)  Exhibits:                                         Sequential
                                                                 Page Number
                                                                 -----------

               11   Statements of Computation of Earnings
                    Per Share For the Three and Nine Months
                    Ended September 30, 1996 and 1995.               16

          (b)  No Form 8-K's were filed during the quarter ended
               September 30, 1996.


                                      -14-
<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:  October 31, 1996       By /s/ David R. Bovee
                                 ----------------------------------------
                                 David R. Bovee
                                 Vice President, Chief Financial Officer
                                 (principal accounting and financial
                                 officer)


                                      -15-