Dana Corp. filed for Chapter 11 bankruptcy
protection Friday in New York, following in the footsteps of Delphi Corp., which filed in October 2005.The company has a line of credit in place for the Chapter 11 process, and says that the filing will not impact deliveries to customers. The century-old company manufactures heavy components for cars and trucks, including frames, axles and driveshafts. Both Ford and GM are major Dana customers. Automotive News ranks Dana 15th in the top 100 global automotive supplers, with worldwide sales of over $9 billion and over 46,000 employees, 19,000 of which are in the U.S.
The bankruptcy filing covers only Dana and its 40 U.S. subsidiaries. The company's foreign subsidiaries are unaffected.
Dana Corp. now gains the unfortunate distinction of becoming the third-largest automotive bankruptcy in history, behind Delphi and Federal-Mogul.
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Reader Comments (Page 1 of 1)
Mick @ Mar 3rd 2006 5:55PM
The man writes for the Pittsburgh Post-Gazette! Have you ever driven in Pittsburgh? The roads there could throw the track off a Sherman tank, so you've got to have something the size of a Buick just to stand a fighting chance. You could turn the whole (pun noticed, not intended) of Western Pennsylvania into an armored vehicle test range!
Max @ Mar 3rd 2006 6:52PM
Dana is another company to get globalized. They have 19,000 U.S. workers who could possibly lose their jobs. The company stated on their web page that they will be closing plants, and moving production to "lower cost locations". I wonder how much longer the U.S. will have a manufacturing base?
UpgradeGuy @ Mar 3rd 2006 7:28PM
Does this mean I can score some Dana 44's for a song?
Inside Out @ Mar 3rd 2006 8:08PM
Collins & Aikman, Federal Mogul, Tower, Delphi,...
...Now Dana...
...GM?
Think it can't happen?
Don't bet your pension on it...
...unless you're a Union member working for Delphi, then you've got to fight off that evil Mr. Steve.
...or...
...unless you're a current or retired employee of GM, then you've already done it...
Think about it.
Inside Out
Car-la @ Mar 4th 2006 8:27AM
What else needs to happen for the UAW to open their eyes?
Richard Warren @ Mar 4th 2006 8:43AM
# 2 Or any base as long as this thought process is at work:
"George W Bush on Friday defended job outsourcing to India during a whistle stop tour of an Indian technology city as Muslims clashed with police in protests against his visit.
People do lose jobs as a result of globalization. And it's painful for those who lose jobs," Bush told an entrepreneur during a discussion at Hyderabad's Indian School of Business.
The United States would counter it by educating people with the skills needed to be employed in jobs emerging in the 21st century rather than discouraging outsourcing, he said
"The United States will reject protectionism. We won't fear competition. We welcome competition, but we won't fear the future either because we intend to shape it through good policies," Bush said
"People in America should, I hope, maintain their confidence about the future," said Bush, whose job approval ratings have been tumbling in part because of concerns about the U.S. economy."
Outsourcing and software exports are forecast to earn India more than $20 billion in the fiscal year ending March, with about 60 percent of that coming from U.S. companies.
Now this is not just George Bush, both parties do it.
But I'd like to ask Mr Bush this. What do you consider a 21st century job? And exactly how are you going to "educate us" with a tax credit?
Lets see, 21st century jobs, pickup the paper Nurses,nursing home assistance people, truck drivers, fast food prep, waitresses and waiters, security workers, 6 papers in my area have these as the top number of job listings. Do those sound like 21st century jobs? (most lower paying than the jobs being lost)
If you consider the electronics and software jobs 21st century, the dork just sent the message it's OK, feel bad about those that lost there jobs, but here's India! Here's China! Here's wherever it's cheaper!
And we'll give you tax breaks to do it and allow you to use the US Bankruptcy laws that we "adjusted" for regular people but made easier for Corporations. Do your BK here, put it behind you and move.
Anybody notice that it's only the "domestic" side of these businesses being BK'd?
What the hell 30,000 here, 30,000 there 19,000 there 20,000 there. Just numbers, they'll all find 21st century jobs.
So if you're in the software or any other business that can be outsourced, the stage has been set.
And some think the unions are bad and caused all this?
Gotta tell you, our elected leader with his comments sells us down the river every day.
But it's ok, he has his 21st century job, retirement, travel, security, till death medical plan, all paid by us, but he won't share those benefits with us now will he?
And India, China and others all offer companies trying to gain these jobs assistance, yet we stand by as citizens and workers and those who have not lost their jobs just say "Oh well" Why? Simply this, you still are employed. Most of the time it does not hit you until it happens TO YOU.
It's not labor causing this, you make all the excuses you want about it. It's the management of these companies that has failed. Sure the union asked for higher wages, but management signed off on all of it, allowed (with the union) to have poor workers stay.
They also structured the upper management pay plans to be secure. Even if they failed.
Ever wonder how these CEO's and other upper management BK a company, yet move to another company as a heros?
I think we need to demand better, but maybe not, just read the words of our leader above, he's BKing our jobs with his words.
How about this instead:
"We know our Indian friends are doing a wonderful job building their economy and trade with the United States, it's important to continue in the direction you are going.
You have a dedicated and excellent workforce, just as we have in the United States and we look forward to you competing fairly in the global marketplace."
At home our American workers look forward to the challenges of the global economy and the opportunities it presents, we are ready, lets share our resourses where we can and compete fairly when we must as we welcome in the dawn an active global economy.
But he "hopes" we will maintain our confidence about the future and will shape it with good policy.
You know it just hit me the CEO that needs to be fired, George Bush.