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This may effect GTO rearend availability even more than it already is......
:eek:



Dana says US operations file for bankruptcy By David Bailey
1 hour, 19 minutes ago



Auto and truck parts maker Dana Corp. (NYSE:DCN - news) said on Friday that its U.S. operations have filed for bankruptcy protection, succumbing to declining production at large U.S. customers and high materials costs.

Dana, the first large U.S. auto parts maker to file for Chapter 11 protection from creditors in 2006, cited general industry financial deterioration and its inability to renew or expand credit facilities in a timely matter.

The filing covers Dana and 40 U.S. subsidiaries. It excludes Dana's European, South American, Asia-Pacific, Canadian and Mexican subsidiaries, which are operating as normal, Dana said.

Dana has run into numerous rough spots in the past year beyond raw materials costs and declining market share at key North American customers Ford Motor Co. (NYSE:F - news) and General Motors Corp. (NYSE:GM - news)

The bankruptcy adds to a long list of U.S. auto parts makers that have turned to the courts to aid reorganizations in the past two years, including Delphi Corp. (Other OTC:DPHIQ - news), Collins & Aikman Corp. (Other OTC:CKCRQ - news) and Tower Automotive Inc. (Other OTC:TWRAQ - news)

The filing did not surprise industry analysts. Dana, which was in talks with lenders on financing alternatives, on Wednesday announced it had failed to make $21 million of bond interest payments.

David Cole, chairman of the Center for Automotive Research, said a restructuring likely would take at least one year and possibly several, though it shouldn't have a great deal of impact on automakers.

"The whole purpose is to enable the company to restructure to a point where they are once again profitable," Cole said.

Dana shares were down 26 cents, or 25.5 percent, to $0.67 on the New York Stock Exchange in early afternoon trading.

OCTOBER RESTRUCTURING PLAN TO CONTINUE

The company last October announced plans to cut jobs, plants and noncore business and shift some production to lower-cost areas to focus its operations, something that will continue under the Chapter 11 reorganization, it said.

The company was forced to restate financial statements back several years due to accounting problems, which also delayed the filing of quarterly results, and led to a formal U.S. Securities and Exchange Commission investigation.

Dana posted losses totaling $1.23 billion through the first nine months of 2005, and had postponed a decision on whether to issue a first quarter 2006 dividend until it completes its fourth-quarter and full-year 2005 financial reports.

Dana, a producer of frames, axles and driveshafts, was founded in 1904 as the Spicer Universal Joint Manufacturing Co. It had revenue of $9.1 billion in 2004, its last full year of reported results, and about 46,000 employees worldwide.

Roughly three-quarters of its 2004 sales were derived from automotive systems sales and 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.

Jones Day is Dana's legal adviser, Miller Buckfire is its financial adviser and AlixPartners is its restructuring adviser.

Toledo, Ohio-based Dana said it has secured $1.45 billion of debtor-in-possession financing from Citigroup, Bank of America, and JP Morgan Chase Bank for the restructuring, pending approval of the New York bankruptcy court.

Dana said the DIP facility replaces a previous $400 million revolving credit facility and $275 million receivables securitization facility.

(Additional reporting by Jui Chakravorty in Detroit)
 

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Yep, if you're GM, you can laugh about Ford and Chrysler problems if you want, and the others can do the same to each other. If any of the big 3 fail, or when they have big problems the trickle down effect will be enormous.

I'm pullin' for all of 'em to get their heads out of the arses, do the right things development, marketing, and production wise, and pull themselves out of the mess they've been sliding into for decades.
 

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PHOTOGOAT said:
This may effect GTO rearend availability even more than it already is......
:eek:



Dana says US operations file for bankruptcy By David Bailey
1 hour, 19 minutes ago



Auto and truck parts maker Dana Corp. (NYSE:DCN - news) said on Friday that its U.S. operations have filed for bankruptcy protection, succumbing to declining production at large U.S. customers and high materials costs.

Dana, the first large U.S. auto parts maker to file for Chapter 11 protection from creditors in 2006, cited general industry financial deterioration and its inability to renew or expand credit facilities in a timely matter.

The filing covers Dana and 40 U.S. subsidiaries. It excludes Dana's European, South American, Asia-Pacific, Canadian and Mexican subsidiaries, which are operating as normal, Dana said.

Dana has run into numerous rough spots in the past year beyond raw materials costs and declining market share at key North American customers Ford Motor Co. (NYSE:F - news) and General Motors Corp. (NYSE:GM - news)

The bankruptcy adds to a long list of U.S. auto parts makers that have turned to the courts to aid reorganizations in the past two years, including Delphi Corp. (Other OTC:DPHIQ - news), Collins & Aikman Corp. (Other OTC:CKCRQ - news) and Tower Automotive Inc. (Other OTC:TWRAQ - news)

The filing did not surprise industry analysts. Dana, which was in talks with lenders on financing alternatives, on Wednesday announced it had failed to make $21 million of bond interest payments.

David Cole, chairman of the Center for Automotive Research, said a restructuring likely would take at least one year and possibly several, though it shouldn't have a great deal of impact on automakers.

"The whole purpose is to enable the company to restructure to a point where they are once again profitable," Cole said.

Dana shares were down 26 cents, or 25.5 percent, to $0.67 on the New York Stock Exchange in early afternoon trading.

OCTOBER RESTRUCTURING PLAN TO CONTINUE

The company last October announced plans to cut jobs, plants and noncore business and shift some production to lower-cost areas to focus its operations, something that will continue under the Chapter 11 reorganization, it said.

The company was forced to restate financial statements back several years due to accounting problems, which also delayed the filing of quarterly results, and led to a formal U.S. Securities and Exchange Commission investigation.

Dana posted losses totaling $1.23 billion through the first nine months of 2005, and had postponed a decision on whether to issue a first quarter 2006 dividend until it completes its fourth-quarter and full-year 2005 financial reports.

Dana, a producer of frames, axles and driveshafts, was founded in 1904 as the Spicer Universal Joint Manufacturing Co. It had revenue of $9.1 billion in 2004, its last full year of reported results, and about 46,000 employees worldwide.

Roughly three-quarters of its 2004 sales were derived from automotive systems sales and 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.

Jones Day is Dana's legal adviser, Miller Buckfire is its financial adviser and AlixPartners is its restructuring adviser.

Toledo, Ohio-based Dana said it has secured $1.45 billion of debtor-in-possession financing from Citigroup, Bank of America, and JP Morgan Chase Bank for the restructuring, pending approval of the New York bankruptcy court.

Dana said the DIP facility replaces a previous $400 million revolving credit facility and $275 million receivables securitization facility.

(Additional reporting by Jui Chakravorty in Detroit)
I saw this coming a while ago. I had my new rear installed just this week, instead of April because of Dana's skid, and the whine is gone. I was told by the service manager they are seeing rear end whine in the solstice too (Dana) :rolleyes:

I used to work for Dana. We were suppliers to Mack Trucks chassis, axles, and carriers. I was with Dana 18 years before they and Mack Trucks got a divorce.

Dana's decline started when Gerry Mitchell who was the CEO retired. His replacements over the years bled the company. POOR decisions at corporate level, bad business ventures, and extremely poor management began to take it's tole. They began closing plants, wage freezes, and layoffs were corporate wide. There is no need to get into specifics about all the blunders what were made.....About 18 months ago, Dana was under a hostile take over move by Arvin Meritor. Meritor nearly exceeded. Dana, who was ANTI union as all corporations are, looked for help from their labor. Dana entered into a business venture with the UAW. Dana who fought tooth and nail with unions, and spent bokoo bucks in anti union campaigns allowed the UAW to organize without Dana fighting. If the employees wanted representation, no elections were needed, just a card check. 50%+1. All Dana plants became UAW. This stopped the hostile take over attempt by Arvin Meritor.

Dana has an employee stock purchase plan. I was in it and made some $$ until one year they decided to reformat their plan to a 5 year 100% match. You had to wait 5 years to cash in and then be matched at 100%. That is when I baled. I'm glad I did because many I know lost $$$. I know many who have sat on their stock, who purchased when it was up at 50 a share and higher, just to see it at where it is now. Many lost a small fortune. I never thought I'd see Dana file for protection. I will not mention CEO's that ran that company into the ground, but the last CEO that had intregity was Gerry Mitchell. When he retired, Dana began it's descent to hell. It's a shame too because their core philosophy regarding workers was outstanding. Charlie Spicier is doing somersaults in his grave. What I gave was a brief overview regarding part of the reason Dana is in shambles. There is much more that can be said about their dire straits but you get the jist.
 

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Thanks for your post GTO Judge. You shed some insights into issues. This is is not unique to Dana, it has to do with some companies that either did not see the trend coming or made some poor decisions or both. I wonder who is making the diffs and axles for all these Camry's Hondas, Hyndai, Nissans being made in the States? Obviously not Dana.
 

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Not sure if this impacts GTO's...

The press release stated the bankruptcy filing only affected domestic operations. I'm pretty sure the rear axle assemblies for GTO's are made in Australia. I would guess Australia is part of the Asia-Pacific operations. Can anyone else shed some light on this?
 
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