Article published October 14, 2008
Dana Corp. plans for satellite office near Detroit Metro
By LARRY P. VELLEQUETTE
BLADE BUSINESS WRITER
A spokesman for Dana Holding Corp. - which in August said it was abandoning Toledo next year for Maumee - said yesterday that the company wants to open a satellite office for its top executives in suburban Detroit.
Chuck Hartlage, the spokesman, said the decision, which is under study, wouldn't mean that the automotive parts manufacturer would be leaving the Toledo area.
"Dana's executive offices are and will continue to be based at its headquarters building in the Toledo area. We are evaluating opportunities for a satellite office near Detroit Metro [Airport] that would be used intermittently by a small group of Dana executives," Mr. Hartlage said.
He said the office would be convenient for top executives of Toledo's largest company as they meet with customers and travel to other locations. He also said it is possible that Dana's board of directors might hold meetings at the office.
"Being near the airport, it's easier to fly to Detroit than to Toledo," Mr. Hartlage said. The company's top executives, he said, "are going to continue to work out of our headquarters. Sometimes they're going to be working out of an office in Detroit, but that doesn't change the fact that our headquarters is here."
William Carroll, chairman of the Toledo-Lucas County Port Authority and himself a former top Dana executive, expressed concern about Dana's long-term intentions."If this is what they feel is necessary … but myself, I guess it would be best served to have sales and engineering close to top customers instead of top executives," Mr. Carroll said. "Dana has been in Toledo for 108 years. They've been an important part of this community, and I would hope they remain that for many years to come."
Don Iannone, a corporate site-selection consultant in Cleveland, said he hadn't heard about Dana's decision, but said that in today's economic climate, especially in the auto industry, it's important not to make any unfounded assumptions.
"If I was the economic developer representing the Toledo area, I guess I would have some concerns that the executives are going to be centered in Detroit and not in Toledo, because those are the decision-makers," said Mr. Iannone, of Donald Iannone & Associates. "I'd be asking, 'What does this really mean? Is there some way we can keep the headquarters here?'•"
Dana has undergone a tumultuous 10 months. The $8.6 billion company emerged from bankruptcy protection at the end of January with a new board of directors and the resignation of Mike Burns as its chief executive officer.
In April, the company hired a well-respected executive from Toyota Motor Corp., Gary Convis, to replace Mr. Burns as CEO and promptly went about adopting Toyota's manufacturing practices at its facilities.
But, over the summer, spiking gasoline prices crippled the truck-heavy North American automotive market, and Dana cut almost 10 percent of its work force.
In August, Dana announced that it had sold its Dorr Street headquarters campus to Health Care REIT Inc. and would move its business functions from Toledo to offices in Maumee and Monclova Township.
At the time, it said it would lease its Dorr buildings for a year until new offices at its Maumee tech center are done. Then it would move the 175 employees at its headquarters. The firm said it plans to spend $5 million to improve the offices at the tech center.
Mr. Carroll noted that the auto-parts manufacturer previously had a large facility in the Detroit suburb of Farmington Hills but closed it several years ago.
Neither Mr. Convis nor Dana executive chairman John Devine has established permanent residence in the Toledo area.
Contact Larry P. Vellequette at:
lvellequette@theblade.com
or 419-724-6091.
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