Our rear end Just filed for Chapter 11

[merc]

CHICAGO, March 3 (Reuters) - Auto and truck parts maker Dana Corp. (DCN.N: Quote, Profile, Research) filed on Friday for bankruptcy protection, the latest U.S. supplier to succumb to declining production at large U.S. customers and high materials costs.

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


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 been hurt by declining market share of key North American customers Ford Motor Co. (F.N: Quote, Profile, Research) and General Motors Corp. (GM.N: Quote, Profile, Research), which accounted for 36 percent of Dana's sales in 2004.

The producer of frames, axles and drive shafts generates about three-quarters of its revenue from the automotive sector, with a focus on Big 3 U.S. automakers. Paccar Inc. (PCAR.O: Quote, Profile, Research), and International Truck & Engine Corp. are among its largest truck business customers.

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. (DPHIQ.PK: Quote, Profile, Research), Collins & Aikman Corp. (CKCRQ.PK: Quote, Profile, Research) and Tower Automotive Inc. (TWRAQ.PK: Quote, Profile, Research)

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. Continued...

:(

[martyo]

This is only one of a series of many automotive related bankruptcies that was, or will be, filed.

[MM2004]

This is only one of a series of many automotive related bankruptcies that was, or will be, filed.

Yep, the news came around 11:00 this morning :alone: .

We are resuming normal operations in North America.

Twenty-two years service....sad, very sad.:depress:

Mike.

[O's Fan Rich]

Dana had a frame building operation here in Reading up to a few years ago. Cited some of the same issues for closing up here.
No mention of the fraud and waste that was involved in the plant.
There was a huge investigation into the loss of over 175 MILLION in scrap sales and fraud over the years, but it seems to have been simply swept away, like so many Union jobs. Millions out.... not enough millions in.

[MikesMerc]

It's been a bad run.

Tower Automotive
Collins & Aikman
Delphi

now Dana.

The only good thing about this Dana bankruptcy is that I saw this one coming and we got out of doing business with them a while back. So we're not going to get stuck with the huge bad debts the other bankruptcies put to us.

As Marty said, the trend will not go away. Don't be surprised if you see GM in chapter 11 before xmas. And I am dead serious about that. Visteon is also on the ropes and Ford is no longer in a position to bail them out.

Tough times these are.

[martyo]

Don't be surprised if you see GM in chapter 11 before xmas.

I don't know if it will be that soon, but it seems pretty likely that it will happen at some point. And, I am not sure that it is like back in teh days where Uncle Sam could bail out Chrysler.

[martyo]

Here is a little of the news about Dana from one of my wire services:

* Dana Corp. Files For Bankruptcy *

Portfolio Media, New York (March 3, 2006)--Parts maker Dana Corp. has become the latest company to succumb to the financial woes plaguing the auto industry, filing for Chapter 11 protection after missing $21 million in debt payments.

In the Chapter 11 filing, Dana listed assets of $7.9 billion and liabilities of $4.7 billion. The company will fund its restructuring with a $1.45 billion facility from Citigroup, Bank of America, and J.P. Morgan Chase.

[Vortex]

Horrible. Wonder what their execs were drawing? It sure is a shame to see these great US manufacturers go down. Well, we keep voting for the idiots who think this is just fine....