By Lewis Loflin
On October 20, 2005, Dana Incorporated announced the closure of two Automotive Systems Group facilities, including its driveshaft plant in Bristol, Virginia, shifting production to Mexico. The Bristol facility employed 270 workers, while a Buena Vista, Virginia, axle plant (275 employees) consolidated into Dry Ridge, Kentucky. Additionally, 100 of 385 jobs at Lima, Ohio, moved to Mexico. The Kingsport Times-News (October 21, 2005) quoted Dana officials:
The Bristol, VA., driveshaft facility will be closed and its production consolidated into Dana operations in Mexico...
The move, attributed to cost savings under NAFTA, saw Bristol’s $8 million payroll drop to an estimated $1.3 million in Mexico, per local economic analysis.
The closure eliminated 270 well-paying jobs, with Steb Hipple (ETSU economist) estimating a secondary loss of 400 service-sector jobs (BHC, October 21, 2005). Bristol Mayor Weberling lamented the loss, noting two prospective auto parts firms avoided the city due to Dana’s union presence, despite Virginia’s right-to-work status. Dana denied union influence, calling it “purely economic” (Kingsport Times-News).
Bristol’s manufacturing sector lost over 1,000 jobs in 2003 alone, including Teleflex, Assured Castings, and TRW closures.
NAFTA facilitated the shift, with Dana citing lower labor costs—Mexico’s lack of benefits, safety, and environmental regulations slashed expenses. Rising steel prices and a 40% power rate hike in Bristol added pressure, though not decisive. Rep. Rick Boucher claimed 2,300 net jobs gained in Bristol (1981–2001) and 8,700 in Washington County, but these figures lack substantiation—my 2011 inquiry to Boucher went unanswered. Job “announcements” often overstated reality, with poverty rising to 19.4% in Bristol by 2023 (ACS).
Dana’s Bristol plant was unionized, as was Ball Corp., which closed in 2016. Local officials, historically anti-union, worked with Dana in 2003 to deter organizing, yet Weberling blamed the union for repelling investors. Industry trends—e.g., Dana’s 2002 Smyth County layoffs (200 jobs)—suggest broader economic forces over union factors.
By 2025, Dana’s Mexico operations thrive, with a Querétaro plant expanding in 2023 (Dana press release). Bristol’s manufacturing base continues to erode—Ball Corp.’s 2016 exit cost 230 jobs. The Tri-Cities lost 60,000 jobs since 2009 (ETSU, 2018), with unemployment at 4.8% (BLS, 2024), above Virginia’s 3.8%. Dana reported an $80 million Q4 2024 loss (Automotive News, February 19, 2025), reflecting global pressures, yet its Mexico shift persists.
Boucher, who touted job growth, lost his 2010 reelection by 9,000 votes amid backlash over NAFTA and other policies. Despite millions in federal funds, Southwest Virginia’s economic recovery stalled—new jobs since 2005 often lack benefits, averaging $9-$11/hour (BLS, 2024).
Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
