DETROIT -- Dana Corp. plans a new round of aggressive cost cuts through layoffs, asset sales, plant closings and the shift of more manufacturing to Mexico.
Dana CEO Michael Burns plans to narrow the depth and breadth of the Toledo, Ohio, engine parts and drivetrain company. Dana said on Thursday that three business units will be put up for sale: engine hard parts, fluid products and pump products. About 9,800 people work for those business lines in 10 countries, Dana said in a press release.
Much of the product reduction falls on noncore businesses with annual global sales of $1.3 billion. These include some of the aftermarket business units that Dana picked up in its ill-fated $4.2 billion acquisition of Echlin Inc., of Branford, Conn., in 1998.
At the time, Echlin posted annual global sales of $3.5 billion, with 140 operations and 28,000 employees. The company produced brake, engine, power transmission, and steering and suspension system components primarily for the aftermarket.
Dana said units being put up for sale include well-known industry names such as the Perfect Circle, Clevite and Glacier Vandervell brands.
Dana announced that it plans to incur noncash charges this year of about $315 million before taxes to reduce the net assets of these businesses.
Dana ranks No. 15 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $9.05 billion in 2004.
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