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

If you liked the article, share on:

Pin It

Comments

Recommended

Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries