Another One Bites the Dust...

from WDIV Detroit Channel 4

Toledo based auto-parts maker Dana Corp. filed for bankruptcy protection for its U.S. operations joining a growing list of suppliers forced to make major restructuring moves because of the slumping U.S. auto industry.

Dana, which makes brakes, axles and other parts, has been in a downward spiral since the company announced last fall that it was restating earnings and lowering its profit forecast for 2005 because of accounting errors.

The auto supplier with 46,000 workers worldwide has lost nearly $1.3 billion in the third quarter last year while realigning its business.

The company said it filed for Chapter 11 protection so it could fix financial and operational problems.

Auto parts suppliers over the last year have been sandwiched by rising energy costs that have driven up the costs of raw materials and driven down demand for gas guzzling sport utility vehicles and pickup trucks. Delphi Corp., the nation's leading parts supplier, filed for Chapter 11 bankruptcy protection in October. Visteon Corp., the nation's second biggest auto parts supplier, is closing three plants and putting another six up for sale under its restructuring plan.
Suppliers say the restructuring moves also are being forced by automakers increasing pressure to sell them parts at lower prices.

Dana supplies parts to General Motors Corp., Ford Motor Co. and other automakers.