Driveline maker Dana Corp. planned to file a bankruptcy court motion on Friday that could begin the process of cutting retiree benefits.
The motion asks for the appointment of a committee to represent the 9,700 retirees not covered by labor unions. Dana has 26,900 retirees in the United States. According to a letter from CEO Mike Burns, the company spent $130 million on retiree benefits in 2005. At the end of last year, it had $1.5 billion in total obligations.
Dana, of Toledo, Ohio, filed for Chapter 11 reorganization in March, beset by production cutbacks from domestic automakers and spiking material costs.