Chrysler gets back 500 vehicles held by hauler Allied Systems

Article by Christian A., on April 6, 2011

Chrysler Group has finally gotten hold of the remaining 500 vehicles that vehicle hauler Allied Systems Holdings Inc. had been withholding due to a contract dispute. Chrysler spokeswoman Katie Hepler said that the vehicles were retrieved last weekend from Allied’s lots in Windsor, Ontario. Chrysler filed a $16 million lawsuit against Allied, alleging that it refused to return 700 minivans after their contract was terminated.

Allied had raised the shipping rates and when Chrysler refused to pay, the hauler withdrew its services.

As a result, Chrysler decided to end ties with Allied. Hepler said that Chrysler is still thinking about whether it will proceed with the lawsuit. Meanwhile, General Motors Co. has revealed that it was able to access 1,704 new vehicles that Allied had hidden away in its storage lots in Fort Wayne, Ind., and suburban Detroit (where there are 1,650 GM vehicles).

Last week, GM terminated a shipping contract with Allied. It also sued the hauler, claiming that about $46.6 million worth of new vehicles were being held hostage.

GM spokesman Dan Flores said that GM has already hired the services of other haulers and has started to transfer the vehicles from Allied’s sites. Shipping these vehicles will take a few days.

Allied had imposed higher rates after pulling out a proposal to shave off 20% from employee wages. This act is in violation of its contract with the Teamsters union. The Canadian Auto Workers said that this matter has put at risk about 600 Allied jobs in Quebec and Ontario, including about 160 in Windsor.

Topics: chrysler

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