Merry Christmas from Dana: Close Michigan Plant

Editors Note: There has been lots of news about Federal-Mogul expanding relationships in China...is this where the Dana products will be manufactured instead of Michigan?

NEW YORK December 22 2004; Reuters reported that Dana Corp. said on Wednesday it signed a long-term pact to outsource gray iron castings production to (Bankrupt)Federal-Mogul Corp. and will close its foundry operations in Michigan, cutting 240 jobs.

The auto-parts supplier said in a statement that closing its Muskegon, Michigan, foundry operations will result in after-tax charges of approximately $12 million, of which $11 million will be taken in the fourth quarter.

"This decision was necessary due to the excess capacity for gray iron piston ring castings," Mike Laisure, president of Dana's Automotive Systems Group, said in a statement. "Our foundry is severely underutilized and no longer a viable operation."

Dana said production in its Muskegon facility is expected to end in the third quarter of 2005 and affected employees will receive outplacement training and separation benefits.

Earlier this week, the auto-parts supplier said it would consolidate manufacturing of its off-highway transmissions and axles, closing a North Carolina plan and eliminating 300 jobs, or less than 1 percent of its work force.