Dana Corp. could be on the hook for hundreds of millions of dollars if it decides to part company with its largest supplier over the cost of component parts.
The Toledo automotive parts supplier wants to end its contract with Sypris Technologies Inc. or find a cheaper supplier of various castings and forgings it buys from the company for $194 million a year. Dana said in court papers this week that Sypris thinks it is owed damages of hundreds of millions of dollars, but the local firm said the amount would be much smaller.
The matter is still before Judge Burton Lifland of U.S. Bankruptcy Court in New York City, where Dana is seeking court protections from creditors.
The judge yesterday did approve bidding procedures for Dana s sale of the majority of its hose and tubing business. A Turkish company beat out more than 100 others with its bid of $70 million. The operations include a factory in Archbold.