Toledo, OH-based Dana Corp. has filed for Chapter 11 bankruptcy protection, giving the automotive supplier a $1.45 billion “debtor in possession” line of credit. According to Dana, the filing affects 40 of its U.S. subsidiaries and allows continued normal business operations and services.
“We want to assure everyone—our customers, suppliers, our people and our communities—that Dana is open for business as usual,” said Dana chairman & CEO Michael J. Burns. “And, to this end, our customers can continue to rely on Dana for quality products—delivered on time and to best-in-class specification.”
Both the company’s Heavy Vehicle Technologies and Systems Group (HVTSG) and Automotive Systems Group (ASG) were worse off in the first nine fiscal months of 2005 than the same period in 2004. HVTSG posted a $3 million loss in the first nine months ended Sept. 30. compared with a $34 million profit in the same period in 2004.
Dana said its revenues fell as it lost market share and production levels shrunk among its largest North American customers. The problem was compounded by higher operating expenses, thanks to sharp increases in commodity and energy prices.
This recent development follows the company’s October announcement of sweeping reorganization efforts, which included divesture of its non-core businesses, operational realignment of its HVTSG and ASG businesses, reductions in workforce and benefits, and consolidating manufacturing operations to lower-cost facilities.
For previous coverage see Dana reorganizes.
Dana designs, manufactures and markets a range of commercial vehicle systems, modules, and services. Its Spicer drivetrain components include a line of steer, drive, trailer, and auxiliary axles, driveshafts, steering shafts, suspensions, and tire management systems.
Dana is also engaged in a drivetrain products and safety systems marketing partnership with Eaton Corp. under the Roadranger umbrella.
FleetOwner contacted Dana and Roadranger but neither were available for comment as of press time.
Separately, Dana has announced its vp & CFO Robert C. Richter has retired from the company. Richter joined Dana with its acquisition of the former General Ohio S&L Corp., which he joined in 1974. He was appointed CFO of Dana in 1999.