Toledo OH-based truck component manufacturer Dana Corp plans to eliminate 11,250 jobs — 15% of its workforce — and attempt to sell Dana Commercial Credit Corp because of slowing North American car and truck production.
“While global economic conditions had already shown signs of weakening, given the events following September 11, we now face the prospect of a further significant decline in our markets,” said Joe Magliochetti, chairman and chief executive officer of Dana.
The job reductions will reduce earnings by $400 million to $450 million after taxes, mostly in the fourth quarter, according to the company. Dana is considering closing or combining about 30 locations. Its third-quarter net income fell 55% as the industry reduced heavy-truck output because of a glut of used trucks. Increased security at United States borders after the terrorist attacks also disrupted deliveries to plants. Dana's net income fell to $13 million from $29 million in the year-earlier quarter. Revenue declined 14% to $2.50 billion from $2.92 billion. The company had already eliminated 10,000 jobs since June 2000, and has 75,000 employees after the current cuts.