Company Overview

Founded in 1904, Dana produces axles, brakes, and driveshafts, as well as engine, filtration, fluid system, sealing, and structural products. The company has technology, manufacturing, and customer service facilities around the world. Since 2001, Dana has been streamlining operations, consolidating or closing 39 facilities, divesting noncore businesses, and laying off 20,000 employees. Despite its efforts, decreased business from large customers as a result of the downturn in the U.S. automotive market—as well as increased costs—took their toll, and by 2006 Dana missed a debt payment and filed a voluntary petition for bankruptcy. The company’s operations outside the U.S. are not part of the proceeding. Dana has filed a plan for reorganization that includes requests to eliminate post-retirement health care benefits, modify labor contracts and close additional plants. The company had sold its aftermarket parts; in 2006 it also sold its trailer axle manufacturing operation, and entered into an agreement to sell its noncore engine hard parts. The company is also looking into relocating some of its operations to further reduce cost, and, hopefully, emerge from Chapter 11.