Dana To Reduce Workforce At Canadian, Australian Plants

Posted on December 21, 2005

Dana Corp. said it will eliminate a total of approximately 800 jobs at one Canadian and three Australian plants in 2006. By December of next year, approximately 500 jobs will be eliminated at Dana's Structural Products plant in Thorold, Ont. This reduction results from the expiration of a supply agreement for truck frames. With the remaining work force of 180 people, this plant will continue to serve as a stamping operation supplying multiple Dana facilities.

By mid-2006, the company will also cut as many as 300 jobs from its Traction Products facilities in Salisbury, South Australia; Cheltenham, Victoria; and Yennora, New South Wales. This reduction is due to the expiration of a supply agreement for rear axle modules. With a combined, ongoing workforce of approximately 850 people at these Australian plants, Dana will continue to produce axles, suspension components, structures, and related modules for various vehicle manufacturers.

Dana said it will record aggregate pre-tax charges of approximately $28 million in the fourth quarter of 2005 for the costs of employee separation in connection with these workforce reductions.

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