Dana Corporation
Dana Corporation, or Dana Holding Corporation, was established in 1904. The company, a leading supplier of products for the automotive industry, is based in Maumee, Ohio, but has its beginnings in Plainfield, New Jersey. Clarence Spicer, a 29-year-old engineering student from Edelstein, Illinois, started the business in a Plainfield factory after leaving Cornell University.
The company was first named Spicer Universal Joint Manufacturing Company, but in 1909, Spicer dropped “universal joint” form the name and the company became Spicer Manufacturing Company. Spicer Manufacturing Company began producing parts for companies and clients such as Buick, Wayne, Mack, Olds, Stevens-Duryea, American Motor Car, Diamond T. and E.R. Thomas.
In 1914, Charles Dana joined the company. By 1916, he was president. The company relocated to Toledo, Ohio in 1928, but it was not until 1946 that Spicer Manufacturing Company became Dana Corporation. In 1948, Charles Dana became chairman of the board. The company acquired several companies and its product line grew.
Today, Dana Corporation still manufactures products for light, commercial and off-highway vehicles, with one major difference – the company no longer uses asbestos in its products. Dana Corporation has not manufactured or sold asbestos parts since the late ’60s to early ’70s. However, the side effects of using asbestos for several decades still remain. As a result, the company is a defendant in thousands of personal injury claims related to asbestos exposure and mesothelioma cases.
Dana Corporation Asbestos Products
Dana Corporation produced asbestos-containing products such as axles, driveshafts, transmissions, sealing and thermal management products, and genuine service parts for light and heavy-duty vehicle manufacturers. Not all products contained asbestos, but many of them did. Specific asbestos products manufactured by Dana Corporation included:
- Brake Linings
- Gaskets
- Sheet Gaskets
- Spraycraft Fireproofing
- Valve Cover Set
These asbestos products have the potential to cause or have caused asbestos-related illnesses in thousands of individuals from mechanics to production workers. Because asbestos-related illness like mesothelioma take 20 to 50 years to develop, personal injury lawsuits against Dana Corporation will continue to grow for years to come.
Dana Corporation and Asbestos Litigation
By December 31, 2006, Dana Corporation had 73,000 active and pending asbestos-related product liability claims, down from 77,000 as of December 31, 2005. By June 30, 2007, the company had 150,000 open claims. Seven percent of the claims alleged cancer or mesothelioma, but according to Dana Corporation, many of the claimants had not become ill. According to a 2007 Associated Press report, Dana Corporation agreed to pay 7,500 personal injury claimants $2 million to resolve their lawsuits. These claims were the result of illness or potential illness arising from gaskets that contained asbestos, which were produced by the company.
Although the company did not admit any wrongdoing, it pursued settlements to avoid further litigation costs. The 7,500 claims totaling $2 million will settle roughly seven percent of the mesothelioma claims and four percent of the cancer claims filed against the Dana Corporation. The company released a statement claiming that most of the cases filed against it did not involve any of the corporation’s products. As a result, many of the cases were dismissed.
Dana Corporation Bankruptcy
Dana filed for Chapter 11 bankruptcy protection in 2006, but claimed this action had nothing to do with pending or future claims against the company. By February 2008, Dana Corporation had left bankruptcy behind after approving a financial reorganization plan. As part of the plan, the company set aside $240 million in cash and other assets to cover future asbestos claims and any environmental contamination liabilities.
Dana Corporation Future
Because asbestos-laden products were manufactured or used until the late 1960s to early 1970s, Dana Corporation can expect more lawsuits in the future. Although personal injury cases against the company will continue in the future, the company is out of Chapter 11 and still one of the top producers of driveline products, power technologies and genuine service parts. Dana Corporation has 22,500 employees in 26 countries and reported sales of $6.1 billion as of 2010. The company plans to continue addressing asbestos claims as they come.
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© 2012 The Mesothelioma Center |
Last Modified Thursday, February 9th, 2012 | Disclaimer | Privacy Policy |
The information provided by The Mesothelioma Center is not a substitute for professional medical advice, diagnosis or treatment.
Sponsored by a law firm concentrating in asbestos litigation, The Peterson Firm, LLP with offices at 1350 Connecticut Ave, NW, Fifth Floor, Washington DC 20036.
