Dana Files for Chapter 11 Bankruptcy
(Akron/Tire Review) Dana Corp and 40 of its subsidiary companies in the US filed for Chapter 11 bankruptcy 3 March. The move, long expected by auto industry analysts, does not include Dana’s operations in Europe, South America, Canada, Mexico or Asia.
While under reorganisation, Dana secured $1.45 billion in debtor-in-possession financing to fund its continuing operations. The Toledo, Ohio-based firm employs 19,000 in the US and supplies axles, drive shafts, chassis and steering components, brakes and other components to a wide range of automakers, including troubled GM and Ford.
Dana joins a growing list of auto industry suppliers – including Delphi Corp., Collins & Aikman Corp., Tower Automotive Inc. and Meridian Automotive Systems – that have filed for bankruptcy in the past year due to a downturn in the US auto market.
As part of its restructuring efforts, Dana said it will sell off certain non-core operations and close an undetermined number of plants, and move some manufacturing to low-cost locations.