chapter 11 for Dana

[derailed]

Hopefully things will turn around for the better, just read this article today.


http://quote.bloomberg.com/apps/news?pid=10000006&sid=auQ7vLwRhLkA&refer=home

[Highbanked Hauler]

IMO this all started back in the 70s.You can only move jobs out of the country for so long before there is fallout.

[hemi68charger]

IMO this all started back in the 70s.You can only move jobs out of the country for so long before there is fallout.

[greenpigs]

Yep, what  is it called, the trickle down theory?

[Blakcharger440]

Yep the ole trickle down theory in which the more money rich corporate America makes then it will somehow funnel down to the common folk.....only thing is it never trickled,funneled,fell or worked! That is one of the worst theories ever with no sound basis whatsoever.

[Shakey]

Just a tactic to get out of paying their vendors.   

[Troy]

I kinda thought it had something to do with Ford being their largest customer (almost 30% of their total sales).

Dana, which sells brakes, axles and other parts to most major automakers, has been facing increasing pressure from big car makers to sell them parts at lower prices.

That coupled with rising energy costs that are driving up the costs of raw materials and driving down demand for gas guzzling sport utility vehicles and pickup trucks have put auto parts suppliers in a financial bind.

Auto analysts said Dana's bankruptcy filing will increase the uncertainty engulfing the industry.

"Dana's not the first and it won't be the last," Sean Egan, managing director of Egan-Jones Ratings Co.

Dana supplies parts to General Motors Corp., Ford Motor Co. and other automakers. The filing does not affect the company's businesses in Europe, South America, Asia, Mexico or Canada, the company said.

"They're making money overseas," said Marc Santucci, a supplier analyst for ELM International Inc. "The filing shows that anyone who's a major suppler to the Big 3 is in trouble."
http://biz.yahoo.com/ap/060303/dana_bankruptcy.html?.v=14

Troy

[Shakey]

I personally would not want to be a Tier 1 automotive supplier.

The stories I have heard with regards to the cost reduction expectations on an annual basis would make your head spin. 

These Tier 1 suppliers have no choice, and in turn pass this pressure on to their suppliers who in turn are forced to find raw materials and labour in places other than North America.

Sure you may be rewarded with large volumes but I'd rather have a list of smaller customers with fair and reasonable gross margins than one big customer with loads of volume and a very slim gross margin.

[adauto]

I heard on the Radio yesterday they lost over a BILLION dollars last year... hard to stay in biz that way

The company has also changed hands a bunch of times over the years.

Being in the biz I'm in,  I can't tell you how many times some kid has called lookin for a Dana 60 just thinking they grow on trees. Sometimes teasing them with what kind of truck you got? Knowin  what they are really lookin for.

Or somebody braging that their truck has gotta a DANA in it. Only to have me break the spell and inform them that Dana made rear ends for everybody (GM FORD JEEP MOPAR ect) just to their specs.

Yes another good AMERICAN manufacterer may bite the dust.. but how may of you are shopping at the WAL-Mart this weekend?

[6pkrunner]

This whole instability in the suto industry will continue for several years, if not longer. The worst part is that those who have sowed the seeds of this situation have grabbed bucketfuls of cash and are long gone. Super huge very short term gains for the top brass and shareholders, but certain slow and dragged on demise for the company that remains. The ones left are the lesser mortals who have to come up with quick stable solutions while rapidly made milionaires are sucking pina coladas on southern beaches.

/PO'ed rant off

[Todd Wilson]

Several years ago Dana was having quality control issues with its rear ends for Dodge trucks and Mack trucks. Both dropped Dana and went to other rear ends. American Axle I believe is whats in the newer Rams now.  Its a tough thing for companys. They try or are forced to cut costs so they build stuff over seas for cheaper labor and probably cheaper qaulity. They use cheaper materials and methods to build cheaper parts and then they end up with cheap crap. The costs keep getting cheaper yet the end price of the product keeps going up and it is out of control. Even economy cars are 15g's+ and any kind of midsize or large vahicle is stupid priced. 25 years ago any average working class joe could go buy a new vehicle and not sweat it. Even bigger luxery type cars or trucks. Not anymore. Most people in the midwest here dont make enough in 2 weeks of work to make a payment on a bigger vehicle.

I wonder how well a company would do nowadays if they put in 110% on building a product that worked good and lasted a long time with good quality building and pieces and parts.


I bet this thread will end up being a foreign vs. domestic car bashing.    Neons rule!   


Todd

[Todd Wilson]

I was reading further on this subject on another forum and I did not know but Dana makes the Ford SUV and F series truck frames.  Rumor has it that has grinded to a hault. This could be a bad thing for Ford as they are in bad shape right now as it is. Maybe worse then GM is right now. They also make parts for a lot of other things out there as well.


Todd

[greenpigs]

Neons rule!   

Did Mopar leaving Dana cause it?

I bet it sure didn't help.

Makes me wonder if the Germans are are dumb as I thought..bad taste YES..intelligence I'm not so sure.

Please no Hitler stuff.

[Todd Wilson]

Neons rule!   

Did Mopar leaving Dana cause it?

I bet it sure didn't help.

Makes me wonder if the Germans are are dumb as I thought..bad taste YES..intelligence I'm not so sure.

Please no Hitler stuff.

Late 90's Ram's had some problem with rear ends going out. Dana rear ends. Mack truck also had problems and both went to a different company. I am sure this didnt help but probably wasnt the complete cause.


Todd