"Ford is working closely with Dana to ensure there are no disruptions in the supply of parts to Ford facilities," Ford spokesman Paul Wood said in an e-mail Friday.
Spokesmen for GM and Chrysler echoed that statement.
Dana said it has arranged a $1.45 billion financing package to keep operations running during its reorganization. It filed several motions in U.S. Bankruptcy Court in New York on Friday to ensure payments to vendors and employees.
"Dana is very much following Delphi's game plan to ensure there is no disruption," said Lynn Brimer, a lawyer at Raymond & Prokop PC in Southfield, Mich. Her firm represents some Dana suppliers.
The company's debts to its vendors could have implications throughout the supply chain.
Dana owes $65.5 million to its 10 largest trade creditors, including $10.4 million to a unit of TRW Automotive Inc.
On Wednesday, March 1, Dana's financial crisis came to a head when it missed $21 million in interest payments on its bond debt. Some Dana suppliers then began demanding cash in advance, Brimer said.
Dana employs about 44,000 people in 28 countries, including 19,000 in the United States. It ranks No. 15 on Automotive News' list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $9.06 billion in 2004.
CEO Burns was not available for comment Friday.
Editor's note: The editorial comment on Dana's financial situation was produced before the supplier's Friday, March 3, Chapter 11 filing.
You may e-mail Philip Nussel at [email protected]
You may e-mail Dave Barkholz at [email protected]