just-auto.com

USA: Dana to axe 800 jobs in Canada and Australia

By just-auto.com editorial team | 21 December 2005

Dana Corporation will axe about 800 jobs at one Canadian and three Australian plants in 2006, taking pre-tax charges of approximately US$28 million in the fourth quarter of 2005 for related costs.

Additional pre-tax charges of about $10 million for employee separation and other costs are expected in 2006 or early 2007 as the workforce reductions are completed.

By December 2006, approximately 500 jobs will be eliminated at Dana's Structural Products plant in Thorold, Ontario, as a supply agreement for truck frames expires.  With the remaining work force of 180, this plant will continue to serve as a stamping operation supplying multiple facilities.

By mid 2006, the company will also cut up to 300 jobs from its traction products facilities in Salisbury, South Australia, Cheltenham, Victoria, and Yennora, New South Wales as a supply agreement for rear axle modules ends.

Retaining about 850 people, Dana will continue to produce axles, suspension components, structures, and related modules for various vehicle manufacturers in Australia.

Dana last week said it would close three North American thermal products group facilities by mid-2006, axing 200 workers.