Dana To Restructure, Close Plants, Sell Businesses
In an initiative intended to “position Dana to be more profitable moving forward,” according to Chairman and CEO Michael J. Burns, Dana Corp. has announced a significant restructuring of its operations. As part of the restructuring, the company said it would sell three businesses, close plants, cut employee benefits and reduce its salaried work force by 5%.
Dana said it plans to sell its engine hard parts, fluid products and pump products units, which employ 9800 people and had 2004 sales of $1.3 billion. The engine hard parts business consists of 26 operations which primarily manufacture piston rings, camshafts, and engine bearings under the
The fluid products business consists of 16 operations which manufacture fluid products for braking, power steering, HVAC, and fuel applications. Combined sales for this business totaled approximately $470 million in 2004. The pump products business consists primarily of an original equipment fluid transfer pump operation in
Plant closings and consolidations are expected to cut 645 employees and the company plans to cut its salaried work force through 2006 mainly through attrition, Dana said. The company said it will focus on its light- and heavy-vehicle drivetrain products,associated structures, sealing, and thermal products businesses.
"Collectively, these operational actions will result in a Dana Corporation that is even more focused on its light- and heavy-vehicle drivetrain products, associated structures, sealing, and thermal products businesses," Burns said. "This refocused product array will help us better support our global automotive, commercial vehicle, and off-highway markets and, along with our extensive global footprint and diverse customer base, will contribute to making Dana increasingly competitive moving forward."