More Bad News in the Auto Sector

Dana Corp. added to cutbacks by the struggling auto parts industry, saying it will eliminate 5 percent of its salaried work force, 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 as the industry comes to grips with soaring steel and energy costs and overcapacity.
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.

The businesses that Dana plans to sell -- engine hard parts, fluid products and pump products -- had sales of $1.3 billion and employed 9,800 workers in 2004. The company had sales of $9 billion for the year.

It also plans to close plants in Bristol and Buena Vista, Va., that employ 545 people. And the Automotive Systems Group plans to shift certain steering shaft operations from Lima, Ohio, to Mexico, eliminating about 100 of the 385 jobs at the U.S. plant.

Meanwhile, Dana has stepped up it offshoring sourcing activities from China and other international production locations.

More here.