"Lon" > wrote in message
...
> mabar proclaimed:
>
> > I wonder how this will affect Jeep?
> >
> >
http://quote.bloomberg.com/apps/news...r=news_inde x
> >
> >
> It is legal to summarize a story or quote it in fair use for review.
> That doesn't look like a dissolution type bankruptcy, more to
> renegotiate terms with lenders, break contracts, etc. As for the
> customers of Dana, bankruptcy courts have collection powers that would
> make Tony Soprano envious. Don't see directly why it would affect Jeep
> at all unless they, like some companies, have internal rules prohibiting
> new contracts or purchases from companies in bankruptcy.
>

Lon,

Dana is not actually in default yet. They have a thirty day grace period on
a missed bond payment. That bankruptcy court is going to place a higher
priority on axle production than paying bills, at least in the near term.
They have to do that, to preserve equity, so that there will be something
for creditors to collect. For this reason, I don't think that there will be
any interruption in axle supplies soon, although Jeep and its parents may
reconsider their long term axle sourcing strategy. You can use
transmissions and engines as a model for what may happen. Jeep has changed
suppliers of transmissions and engines several times in the past, and the
current Wrangler, for example, continues to look about the same as its
predecessors.

Earle


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