ERJ staff report (R&PN)
Detroit, Michigan -- Drivetrain parts supplier Dana Holding Corp. said it will close as many as 10 additional plants and slash a further 2000 jobs in addition to the 3000 job losses previously announced, as its quarterly losses widened.
Dana's third-quarter net loss of $271 million compared with a loss of $69 million a year earlier. Sales fell to $1.93 billion from $2.13 billion, the company said in a statement Nov. 6.
Dana didn't identify the plants slated for closing. The moves come as North American auto parts suppliers reel from their customers' deepening cuts in production, which stem from a 14.6 percent decline in US vehicles sales through the first 10 months of the year. About 30 percent of Dana's total revenue in 2007 came from Ford Motor Co. and General Motors Corp.
The additional closings will occur in 2009 and 2010, said Devine, a former chief financial officer of GM and Ford. He said Dana's work force will be reduced by 5000 this year instead of the 3000 previously planned
From Rubber & Plastics News (A Crain publication)
Press release from Dana