Auto Parts Maker Dana Emerges From Bankruptcy

TOLEDO, Ohio (AP) — Auto parts maker Dana Corp. emerged from bankruptcy Friday, a leaner company infused with cash from a private equity firm.

The maker of axles, brakes and other parts filed for bankruptcy protection in March 2006 at a time when big car makers were pressuring it to sell parts at lower prices.

The company said it needed to move manufacturing to lower-cost countries and cut labor costs to avoid huge losses.

It has sold three businesses, announced the closure of eight plants and struck a deal with unions creating a two-tier wage system. It also shifted retiree health care costs to a union-controlled trust fund.

The company expects to save up to $475 million per year. Private equity firm Centerbridge Capital Partners LP has agreed to invest as much as $500 million in the company.

Dana finalized its exit from Chapter 11 by securing $2 billion in financing from Citigroup Global Markets Inc., Lehman Brothers Inc. and Barclays Capital, the company said.

Dana's board of directors has elected John Devine, a former vice chairman and chief financial officer of General Motors Corp., as executive chairman and acting chief executive.

''The reorganization achieved by Dana and its people has positioned us to emerge as a more competitive company,'' Devine said.

Mike Burns, Dana's chairman and chief executive since 2004, will stay with the company for a transition period. ''Fundamental change has been our objective from the outset,'' Burns said.

Dana shares began trading Friday on the New York Stock Exchange under the symbol DAN.