Posted by FredM on Thursday, October 20, 2005 at 6:55PM :
In Reply to: Re: Dana is restructuring posted by MoparNorm on Thursday, October 20, 2005 at 2:17PM :
movin to Mexico
October 20, 2005 - The company is getting rid of its employee stock purchase plan, reducing its share of costs in the medical benefits plan and suspending matching contributions to US and Canadian long-term savings programs.
TOLEDO, Ohio (AP) - Auto parts supplier Dana Corp. said Thursday it will cut its salaried work force by 5 percent, close two plants and sell parts of its business to sharply reduce costs.
The company said last month it expected changes after cutting its profit forecast for the year in half because of soaring energy and steel costs. The entire auto parts supplier industry is struggling.
Dana plans to narrow its product line by selling businesses that employ about 9,800 people worldwide. The company will focus on its light- and heavy-vehicle drivetrain products and sealing and thermal products.
"While a number of the actions we are taking are painful, they are vital to refocusing our company, accelerating cost and process efficiencies, and driving improved performance across our global organization," said Michael Burns, Dana's chairman and chief executive.
The company also said it will significantly restructure operations at two units - automotive systems and heavy vehicles - and cut medical and stock benefits.
For automotive systems, this includes closing two Virginia plants that together employ about 545 people. The group also plans to shift certain steering shaft operations from Lima, Ohio, to Mexico, eliminating about 100 of the 385 jobs at the U.S. plant.
For its commercial-vehicles business, Dana plans to increase production in Mexico and move certain operations from a Kentucky plant to one in Tennessee.
Dana also said it aims to reduce its salaried work force by 5 percent in addition to the operations to be sold or divested by the end of 2006. The company said it plans to achieve those cuts primarily through attrition.
http://abclocal.go.com/wtvg/story?s...ocal&id=3555222