Dana to Shed Jobs, Sell Leasing Unit

Dana Corp. plans to eliminate 11,250 jobs, or 15% of its work force, and sell its leasing unit as the second-largest maker of heavy-truck axles struggles with lower North American car and truck production.

Dana, based in Toledo, Ohio, slashed its dividend to 1 cent a share from 31 cents, the first cut since 1936, and hired Lazard Freres & Co. to help sell Dana Commercial Credit Corp. Dana shares fell $3.26 to close at $11.30 on the NYSE after the firm said it will lose about 5 cents a share in the fourth quarter.

Costs related to shedding jobs and plants will trim profit as much as $450 million after taxes, mostly this quarter, a spokesman said. Auto parts suppliers lost orders as auto makers scaled back North American production of cars and light trucks by 10% in the third quarter.

Dana’s third-quarter net income fell 55% as the industry reduced heavy-truck output because of a glut of used trucks.