Last Updated: March 23. 2011 2:32PM
GM sues car hauler Allied to recover 1,700 pickups, coupes held hostage
Robert Snell / The Detroit News
Detroit— General Motors accused a car-hauling company Tuesday of holding hostage more than 1,700 vehicles — including brand new Chevrolet Silverado pickup trucks and Camaro coupes worth almost $47 million.
The dispute stemmed from a tiff between the hauler and the Teamsters union, the company said.
Some of the vehicles already have been purchased by specific customers, and unless GM is given immediate possession, the vehicles could depreciate in value and dealers would be deprived of valuable inventory, according to a lawsuit filed in U.S. District Court in Detroit.
And unless Georgia-based Allied Ltd. returns the vehicles, GM's attempt to win back customers — a major priority since the automaker emerged from bankruptcy — could suffer, according to the lawsuit.
GM wants a judge to award the Detroit automaker immediate possession of the vehicles, costs and unspecified damages.
"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 wrote in the lawsuit.
Linna declined to comment Tuesday. An Allied lawyer could not be reached immediately for comment.
The dispute apparently began when the Teamsters union told Allied it wasn't going to accept wage concessions and Allied then sought to increase by 15 percent the amount it was charging GM. GM declined to pay more.
"Last Thursday Allied Systems ceased providing transportation services to GM. As a result GM took immediate steps to resource the work previously performed by Allied. Allied was in possession of 1,700 vehicles," GM spokesman Dan Flores said.
GM has asked for the vehicles and Allied has refused, prompting the lawsuit, he said.
rsnell@detnews.com
(313) 222-2028
From The Detroit News:
http://detnews.com/article/20110323/AUTO01/103230335/GM-sues-car-hauler-Allied-to-recover-1-700-pickups--coupes-held-hostage#ixzz1HYKPk78A
