Facebook Twitter

Dana to close 8 auto plants, downsize 3 in North America

SHARE Dana to close 8 auto plants, downsize 3 in North America

TOLEDO, Ohio (AP) — Auto parts maker Dana Corp. plans to close eight U.S. plants and downsize three others in North America, the company said Thursday in a filing with the U.S. Securities and Exchange Commission.

It will announce within the next month which of its 66 plants will close. Eight other plants have either shut down or targeted for closing in the last year.

The company has not decided which plants will close or how many employees will be affected, spokesman Chuck Hartlage said.

Dana, which filed for bankruptcy protection in March, said it would eliminate health benefits for retirees and attempt to alter labor contracts at its unionized plants.

Closing the plants, eliminating health benefits and reducing other labor costs should save between $405 million and $540 million each year, Burns said.

The company also plans to renegotiate contracts with its customers and cut administrative costs. At nonunion plants, it will seek to freeze wages and increase employees' share of health insurance costs.