Dana Corp., Toledo, Ohio, announced organizational changes and more information on previously announced restructuring plans during an analyst conference last week.
Dana announced it is consolidating its Engine Systems and Fluid Systems business units into the newly created Engine and Fluid Management Group. The group will be led by Mike Laisure, who most recently headed Dana's Fluid Systems Group.
In addition, the axle manufacturing operations of its Off-Highway Systems Group will be integrated with those of its Commercial Vehicle Systems unit, reporting to group president Rick Clayton. The company's off-highway sales, marketing, assembly, systems engineering and transmission manufacturing functions will continue to report to Off-Highway Systems President Nick Cole.
"Over the past several months, we have talked about streamlining our organization to focus more sharply on our foundation businesses," said Chairman and CEO Joe Magliochetti. "The creation of the Engine and Fluid Management Group and the recently announced plans to divest the businesses of our Dana Commercial Credit leasing services operation are significant steps in that direction, effectively condensing our structure from seven business units to five."
The company also announced the appointment of Chuck Heine to the newly created position of President of Technology Development and Diversified Products. In this role, Heine, who has held numerous positions with Dana both in North America and Asia, essentially becomes Dana's chief technology officer.
In addition to the organizational changes, Dana also updated its estimates of the charges related to its restructuring plans announced on Oct. 17. Total restructuring costs are expected to be approximately $445 million after tax. Approximately 35 percent of these costs will be non-cash. Most of the cash portion will be severance costs related to the previously announced workforce reduction of more than 15 percent. About 65 percent of the charges will be incurred in the current quarter, with the balance expected to be incurred in 2002. Approximately 75 percent of the charges will be directly related to North American operations. About 55 percent of the restructuring charges will be incurred by the business units primarily serving the light vehicular OE marketplace, and 26 percent will be incurred by the Automotive Aftermarket Group. This is the most extensive restructuring that Dana has ever undertaken and will include the closure or consolidation of more than 30 facilities worldwide.
Dana announced it is consolidating its Engine Systems and Fluid Systems business units into the newly created Engine and Fluid Management Group. The group will be led by Mike Laisure, who most recently headed Dana's Fluid Systems Group.
In addition, the axle manufacturing operations of its Off-Highway Systems Group will be integrated with those of its Commercial Vehicle Systems unit, reporting to group president Rick Clayton. The company's off-highway sales, marketing, assembly, systems engineering and transmission manufacturing functions will continue to report to Off-Highway Systems President Nick Cole.
"Over the past several months, we have talked about streamlining our organization to focus more sharply on our foundation businesses," said Chairman and CEO Joe Magliochetti. "The creation of the Engine and Fluid Management Group and the recently announced plans to divest the businesses of our Dana Commercial Credit leasing services operation are significant steps in that direction, effectively condensing our structure from seven business units to five."
The company also announced the appointment of Chuck Heine to the newly created position of President of Technology Development and Diversified Products. In this role, Heine, who has held numerous positions with Dana both in North America and Asia, essentially becomes Dana's chief technology officer.
In addition to the organizational changes, Dana also updated its estimates of the charges related to its restructuring plans announced on Oct. 17. Total restructuring costs are expected to be approximately $445 million after tax. Approximately 35 percent of these costs will be non-cash. Most of the cash portion will be severance costs related to the previously announced workforce reduction of more than 15 percent. About 65 percent of the charges will be incurred in the current quarter, with the balance expected to be incurred in 2002. Approximately 75 percent of the charges will be directly related to North American operations. About 55 percent of the restructuring charges will be incurred by the business units primarily serving the light vehicular OE marketplace, and 26 percent will be incurred by the Automotive Aftermarket Group. This is the most extensive restructuring that Dana has ever undertaken and will include the closure or consolidation of more than 30 facilities worldwide.
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