Dana Holding Corporation is today emerging from Chapter 11 reorganization as a new company. Dana’s U.S. operations entered Chapter 11 on March 3, 2006.
During a comprehensive, 23-month reorganization, the company and its stakeholders achieved US$440 million to $475 million in annual cost savings and revenue improvements.
These annual savings were achieved primarily from improvements in its manufacturing footprint, reducing labour costs and benefit changes, working with labour and retiree groups to create VEBA trusts to assume ongoing obligations for retiree health and welfare costs, and further reductions in administrative expenses.
“Fundamental change has been our objective from the outset of this process,” said Mike Burns.
“We have achieved this goal through the persistence and dedication of our employees around the world, the partnerships with our labour unions, and the ongoing confidence and support of our customers and suppliers.
Burns, who served as Dana’s Chairman and CEO since 2004 and will remain with the company for a transition period, added,
“I am proud of our emergence today and what the people of Dana have accomplished during the restructuring process. Our actions were necessary for the future of the company. And we achieved our goal while maintaining a strong focus on taking care of our customers.
“This is the right time for a change, and I am convinced that the company and its new leadership are poised for success.”
In conjunction with emergence, Dana’s new board of directors has elected John Devine executive chairman and acting CEO.
Devine is the former vice chairman and chief financial officer of General Motors Corporation, where he served from 2001 to mid-2006.
Prior to joining GM, Devine served as chairman and chief executive officer of Fluid Ventures, LLC.
Previously, he spent 32 years at Ford Motor Company, where he last served as executive vice president and chief financial officer.
Devine is also a board member of Amerigon Incorporated.
“I’m pleased to join the Dana team, particularly on this important day for our company and all of its stakeholders,” said Devine.
“The reorganization achieved by Dana and its people has positioned us to emerge as a more competitive company.
“We will be focused on the goal of returning Dana to a leadership position in our industry.”
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