2013 Audi A3

GM Sues Car Hauler Over 1,700 'Hostage' Vehicles

 
3 1,274 views Mar 25, 2011
Follow Nelson

2011 Chevrolet Camaro SS

HI-RES GALLERY: 2011 Chevrolet Camaro SS

We've all seen the trucks, loaded with brand-new, plastic-wrapped cars headed to showrooms, but have you ever wondered who actually moves those car around? Turns out for GM, it's largely Allied. But things aren't trucking along for the outfit, right now. Chrysler is also affected by Allied's stoppage.

Over 1,700 Chevy Silverados and Camaros are currently being held "hostage" by the company, says GM, and it has filed suit to recoup the the cars--or their $47 million value. The cars, some already purchased and supposed to be delivered to their new owners, are being held up in a fight between Allied and the Teamsters union, to which most of its drivers belong.

Chrysler's backlogged deliveries are primarily minivans, according to the CAW. Lots around Windsor, Ontario are beginning to fill up with the undelivered minivans as they await Allied to resume trucking.

As the cars sit, not being delivered, GM says they are depreciating. Accordingly GM wants the U.S. District Court for Detroit to hand over the cars and trucks immediately. GM doesn't think Allied has the cash on hand to satisfy a judgment for the full value of all of the vehicles.

Ironically, it's yet again unions, and yet again wage disputes, that are giving GM all of this trouble. Once the wage hike dispute erupted with the union, Allied attempted to raise its rates for GM vehicles by 15 percent. GM refused to pay the hike.

[DetNews, Edmonton Journal]





Tags:
Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (3)

  1. By Sammy Posted: 3/25/2011 7:13pm PDT

    Allied, you're messing with the General! Don't pull that 15% bull.
     
    Post Reply
    Vote
    Bad stuff?

  2. By adam Posted: 3/27/2011 10:33am PDT

    unions are destroying our country, they're comprised of a bunch of losers that think they are worth more than they actually are. teamsters can kiss my ass
     
    Post Reply
    Vote
    Bad stuff?

  3. By Bea Posted: 3/28/2011 8:46am PDT

    To post #1, Drivers gave up 17% pay to help car companies/haulers & themselves keep a job for several years. FORD AGREED TO THIS RECENT INCREASE KNOWING IT'S NEEDED & FAIR! Post #2 this article is biased please read others. Post #3 replace the word Teamsters with UAW & I agree. $5 scripts, $10 co-pays, 85% of pay for not working! Who in this country but politicians & the UAW gets that? This is a pissing contest between car haulers & GM/Chrysler. Go Allied! Don't let GM bully you! A lot of drivers are out of work (no 85% of pay). Rumor has it GM hasn't paid Allied in months. This is typical of GM, ask any vendor that has done work for them. They (GM) many consider it 'good business' to hold onto & gain interest on money owed to others but in these economic times it causes problems. Do you work for nothing? How long can you go without pay? Profits need to trickle down to the people that put up with little or no profit margins for the last few years to help the car companies out - if they are still in business! GM is standing, -not sitting- standing on a three legged stool, always has been. Didn't they learn that over the last 3 years? Their business practices got them bankrupt. Going for 2? Try Fords business plan, it seems to work.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.