Report: GM, Chrysler sue Allied shippers over cars "held hostage"
by Chris Shunk
) on Mar 24th 2011 at 4:00PM
A situation has developed between Allied trucking and automakers General Motors
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
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.
[Source: The Detroit News
| Bill Pugliano/Getty]