Dana Corp files for bankruptcy
Apr 1, 2006 12:00 PM
Dana Corp has filed for bankruptcy protection for its United States operations.
The Toledo OH-based company, which makes brakes, axles and other parts, has been in a downward spiral since it announced in autumn 2005 that it was restating earnings and lowering its profit forecast for the year because of accounting errors. In January, Dana said it lost nearly $1.3 billion in third quarter 2005 while realigning its business.
The company, which has 46,000 employees worldwide, said it filed for Chapter 11 protection so it could fix financial and operational problems. The filing, which was entered in the US Bankruptcy Court for the Southern District of New York, does not affect its businesses in Europe, South America, Asia, Mexico, or Canada.
Dana supplies parts to General Motors Corp and other automakers.
Michael Burns, Dana chairman and chief executive officer, said the company will move forward with its restructuring plans.
The firm that began as Spicer Mfg Co took on its current name in 1946. Dana in 1998 bought axle and brake maker Echlin Inc in what was one of the biggest mergers in the vehicle parts industry. The move increased its overall employment to 79,000 workers.
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