Looks like fallout from automakers GM and FORD is flowing down to affect more
I know they make quite a few oem replacement products for the aftermarket.... so
this might be of interest.
CHICAGO (Reuters) - Auto and truck parts maker Dana Corp. (NYSE:DCN - news) said
that its U.S. operations have filed for bankruptcy protection, succumbing to
production at large U.S. customers and high materials costs
The filing covers Dana and 40 U.S. subsidiaries. It excludes Dana's European,
American, Asia-Pacific, Canadian and Mexican subsidiaries, which are operating
Dana has run into numerous rough spots in the past year beyond raw materials
declining market share at key North American customers Ford Motor Co. (NYSE:F -
General Motors Corp. (NYSE:GM - news)
The bankruptcy adds to a long list of U.S. auto parts makers that have turned to
courts to aid reorganizations in the past two years, including Delphi Corp.
OTC:DPHIQ - news), Collins & Aikman Corp. (Other OTC:CKCRQ - news) and Tower
Inc. (Other OTC:TWRAQ - news)
The filing did not surprise industry analysts. Dana, which was in talks with
financing alternatives, on Wednesday announced it had failed to make $21 million
David Cole, chairman of the Center for Automotive Research, said a restructuring
would take at least one year and possibly several, though it shouldn't have a
of impact on automakers.
"The whole purpose is to enable the company to restructure to a point where they
again profitable," Cole said.
Dana posted losses totaling $1.23 billion through the first nine months of 2005,
postponed a decision on whether to issue a first quarter 2006 dividend until it
its fourth-quarter and full-year 2005 financial reports.
Dana, a producer of frames, axles and driveshafts, was founded in 1904 as the
Universal Joint Manufacturing Co. It had revenue of $9.1 billion in 2004, its
year of reported results, and about 46,000 employees worldwide.
Roughly three-quarters of its 2004 sales were derived from automotive systems
the rest from truck products.
Dana reported total assets of $7.9 billion and liabilities of $4.7 billion, on a
consolidated basis, as of September 30.