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.

If you liked the article, share on:

Topics: chrysler

Comments

Recommended

After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 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