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

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

by Chris Shunk (RSS feed) on Mar 24th 2011 at 4:00PM
http://www.blogcdn.com/www.autoblog....camaro-lot.jpg

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.

[Source: The Detroit News | Bill Pugliano/Getty]

Wow....47 million$!

wonder how this will turn out?

maybe money back for the problem to some customers?

This is just stupid. Why would Allied think this is a good idea?

Let me see if I have this right. If I ask my employee to take a pay cut, and he says no, then I ask my customer for more money and they say no, I can steal their car? What a country!

Another great idea from their union reps.:thumbdown:

ye piss off Camaro owners, makes about as much sense as a hole in the head!

wonder how many of the camaro's belong to C5 members.now we know where your cars are.there being held hostage by a truck firm.

That's a union for you

IBTPZ

"In before the Political ZOT"

You can't say bad things about unions here. :rules:

wow this is crazy.... and bad business for that company.....

It also has everything sitting at the plant, that was coming to the Detroit area, jammed up. I have a new 2011 that's been sitting at the plant since Friday as a result. Too bad that GM and Chrysler have to deal with this kind of behavior from a supplier. All about money. Last I checked we pay about $850 to get one of these bad-boys shipped. That seems like it should be enough.

isnt that a movie about weed? or a documentary about weed...LMFAO!

The company made the bad decision. The union does not run the company, it represents the workers.

Don't blame the union.

AMEN