Latest Automotive Industry News Discussion of all topics pertaining to future automobiles or all Fuels that move them - Gasoline, Diesel , Bio Diesel , E85 , Battery , Hybrids , Electric , Hydrogen Powered , Solar Panel ..

Report: GM, Chrysler sue Allied shippers over cars "held hostage"

Thread Tools
 
Search this Thread
 
Old Mar 24, 2011 | 03:20 PM
  #1  
Diesel Bombers's Avatar
Thread Starter
|
Staff Reporter
Joined: May 2007
Posts: 16,929
Likes: 54
Default Report: GM, Chrysler sue Allied shippers over cars "held hostage"



A situation has developed between Allied trucking and automakers General Motors and Chrysler that has deteriorated to the point of hostage-taking. The Detroit News reports that GM has filed a lawsuit against the car-hauling company that alleges it's holding 1,700 of the automaker's valuable Chevy Silverado and Camaro models that should be on their way to dealers. The vehicles in question are worth $47 million, and many of them are reportedly already bought and paid for by customers. The suit also claims that the inventory will depreciate in value if dealers don't receive the vehicles, while at the same time dissatisfying customers.

The problems between Allied, GM and Chrysler started when the car hauler asked for a 15-percent raise. Allied had previously tried to cut the pay of Teamster union members by 20 percent, but was unable to do so due to a provision in the company's labor contract. GM then severed ties with Allied on March 16.

One day after GM filed suit against Allied, Chrysler filed its own lawsuit in Ontario Superior Court. Team Pentastar claims Allied has 700 of its vehicles at Allied locations. The court has already granted Chrysler the right to recover 200 of those vehicles. Chrysler has resourced its vehicle hauling to other car hauling companies as a result of the dispute.



More...
 

Last edited by Jazz; Mar 24, 2011 at 03:43 PM.
Reply
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Diesel Bombers
Latest Automotive Industry News
0
Oct 15, 2014 10:30 AM




All times are GMT -5. The time now is 04:48 PM.