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GM Takes Hauler to Court, Accuses Allied of Holding On to Cars

The scandal which begun a few weeks back between car-hauling company Systems Holdings and American manufacturers GM and Chrysler a few weeks back is taking another turn, after GM announced it would take the hauler to court.

The automotive giant says that Allied “held hostage” 1,700 of its cars, after they have been taken by Allied last Thursday to be delivered to dealers.

According to GM, the cars (Chevrolet Silverado and Camaro worth an estimated $47 million) have been built to customer orders and if the car maker doesn't get immediate possession of the models unlawfully impounded by its former transportation partner, they will depreciate and cause severe financial damages for the dealers.

"The calculable damages resulting from Allied's refusal to meet its obligations to return the vehicles to GM will be substantial and likely beyond the financial ability of Allied to satisfy, further rendering GM without an adequate legal remedy," GM lawyer Daniel Linna says in the lawsuit filing, as reported by DetNews. GM is asking in court for the cars to be returned, after Allied refused to do so, as well as costs and unspecified damages.

The entire scandal blew over last week, but its roots can be found further back in time. Allied wanted to cut the payoff the 2,500 US and Canadian workers represented by the Teamsters union by 20 percent, but gave up the idea after the Teamsters fought back and threatened to strike.

The hauler then wanted to shift the money it would have made by cutting the wages into the rates charged to the two auto makers. GM and Chrysler refused the increased rates, GM managing to partially solve the problem in a short time, by hiring transportation companies.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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