Dana to Close 8 Plants, Cut Staff
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Dana to Close 8 Plants, Cut Staff
I worked for Dana (as a IC) for almost a year…one statistict, if I remember it accurately is that at least at one time, at least 95% of ALL vehicles on the road had at least one Dana part in them…Dana is a great company and it’s very sad to see what’s happening to them. 
P.S. I keep wondering how all these companies moving production to Mexico are going to find employees as it seems to me that most of Mexico’s unemployed are all moving here! 
Originally Posted by Wall Street Journal
A WALL STREET JOURNAL NEWS ROUNDUP - November 10, 2006
Auto-parts maker Dana Corp. said it plans to close eight U.S. plants and cut staff at three others in North America.
Dana, which filed for bankruptcy protection in March, also said in a Securities and Exchange Commission filing that it would eliminate health benefits for retirees and attempt to alter labor contracts at its unionized plants.
"Our existing labor costs, especially in the U.S., impair our financial position and are a significant impediment to a successful reorganization," the Toledo, Ohio, company said in the filing.
Dana will announce within the next month which plants will close, Chief Executive Michael Burns said in a letter sent to the company's 40,000 employees.
Dana, which sells brakes, axles and other parts to most major auto makers, has said in its bankruptcy filing that rising energy costs were driving up production costs and hurting demand for its customers' products. Closing the plants, eliminating health benefits and reducing other labor costs should save $405 million to $540 million each year, Mr. Burns said. The company also plans to renegotiate contracts with its customers and cut administrative costs.
"We expect to continue to move manufacturing capacity from the U.S. to lower-cost countries, such as Mexico," the company's filing said.
Auto-parts maker Dana Corp. said it plans to close eight U.S. plants and cut staff at three others in North America.
Dana, which filed for bankruptcy protection in March, also said in a Securities and Exchange Commission filing that it would eliminate health benefits for retirees and attempt to alter labor contracts at its unionized plants.
"Our existing labor costs, especially in the U.S., impair our financial position and are a significant impediment to a successful reorganization," the Toledo, Ohio, company said in the filing.
Dana will announce within the next month which plants will close, Chief Executive Michael Burns said in a letter sent to the company's 40,000 employees.
Dana, which sells brakes, axles and other parts to most major auto makers, has said in its bankruptcy filing that rising energy costs were driving up production costs and hurting demand for its customers' products. Closing the plants, eliminating health benefits and reducing other labor costs should save $405 million to $540 million each year, Mr. Burns said. The company also plans to renegotiate contracts with its customers and cut administrative costs.
"We expect to continue to move manufacturing capacity from the U.S. to lower-cost countries, such as Mexico," the company's filing said.
Last edited by Robert_Nashville; Nov 10, 2006 at 11:56 AM.
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Keep buying Toyotas people!! I know Im preaching to the choir! This along with outsourcing is doing a number to our middle class Its rotting away. The thing is outsourcing and closing plants is the only way to stay alive..Funny thing is by outsourcing and closing plants were helping the MEXICO MIDDLE CLASS! The ones comming here are not middle class and going for broke here to make a living. Were shooting ourselves in the foot.
Pretty soon your going to have the rich and the working poor if we dont do something about our american economy..outsourcing to China, India, mexico and so on.
Pretty soon your going to have the rich and the working poor if we dont do something about our american economy..outsourcing to China, India, mexico and so on.
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