Dana Corp. became the latest Tier One automotive supplier to declare bankruptcy when it filed for creditor protection March 3, 2006. In its statement, the Toledo, OH-based company and and 40 of its U.S. subsidiaries said Chapter 11 would be a way “to address financial and operational challenges that have hampered its performance”.

The company is a leading global supplier of drivetrain, chassis, structural, and engine components to automotive, commercial, and off-highway vehicle manufacturers. It explained that in recent quarters it has suffered “a continued decline in revenues resulting from the decreasing market share and production levels of its largest domestic customers.” Dana also cited increases in commodity and energy prices in its list of financial problems.

Dana chairman and CEO Michael J. Burns said, "The Chapter 11 process provides the company an opportunity to fix our business comprehensively -- financially and operationally. This will be fundamental change, not just incremental improvement.” Burns offered assurance to customers, suppliers, and employees that business would continue as usual through the reorganization process.

Burns said Dana will proceed with previously announced divestiture and restructuring plans, which include the sale of several non- core businesses and the closure of several facilities and shift of production to lower-cost locations. He said, too, that Dana will continue working “to reduce costs, increase efficiency, and enhance productivity.”