GM, Chrysler sue Allied over "hostage" vehicles (Reuters)

Wednesday, March 23, 2011 1:01 PM By dwi

DETROIT (Reuters) – General Motors Co (GM.N) and Chrysler Group LLC (FIA.MI) have sued Allied Systems Holding Inc (HAUL.UL), accusing the machine contractor of "holding hostage" more than 2,400 newborn cars and trucks.

GM, in a causa filed on weekday in U.S. District Court in Detroit, live that Allied breached a lessen under which it provides car-hauling services for the U.S. automaker.

"Defendant is retentive captive 1,704 newborn GM vehicles, with an estimated continuance of $46.6 million," according to the lawsuit. "It simply has no claim to the vehicles; they are GM's property."

In a removed suit, Chrysler said Allied was retentive most 700 of its vehicles.

Allied, which calls itself the maximal machine motortruck in North America, could not be reached for comment.

GM is hunt immediate convey of the vehicles, which include Chevrolet Silverado pickups and Camaro coupes, so it can fill orders. The continuance of the vehicles module decrease and client relations could be perceive if Allied continues to stop them, the causa said. The maker also is hunt some damages.

Chrysler filed its causa on weekday in lake Superior Court, hunt the convey of most 700 vehicles, including minivans, held by Allied in Windsor, Ontario, spokeswoman Katie Hepler said. Chrysler is also hunt damages.

Chrysler said the suite issued an visit that the maker was entitled to vanish most 200 of the vehicles directly and it said it had recovered those vehicles.

Chrysler said the suite adjourned a chance regarding the automaker's remaining vehicles until next weekday or Tuesday.

Other automakers were also affected as Allied ended contracts with Toyota Motor Corp (7203.T), for which Allied hauls most 20 proportionality of its U.S. vehicles by truck, and Honda Motor Co Ltd (7267.T).

Toyota said it was unmindful of some of its vehicles existence held by Allied, while Honda said it had hour with the hauler. All affected automakers have shifted the business to other companies.

Ford Motor Co (F.N) and Nissan Motor Co Ltd (7201.T) said they move to work with Allied and there has been no gap in their deliveries.

GM said in its causa that on March 10 it scholarly Allied had unilaterally low the consequence of its Teamsters organization employees by 20 proportionality and the organization had responded with a 72-hour accomplish attending to Allied.

On March 16, Allied demanded from GM a 15 proportionality price increase, rising each year by 3 percent, nonnegative limitations on the automaker's correct to terminate its lessen with Allied and other revisions to the contract, according to the lawsuit.

GM said it responded by occupation Allied's demands "wholly unacceptable." The next day, Allied said it had reached a care to avoid a strike, but would no longer help customers that had not agreed to newborn lessen terms, the causa said.

Chrysler said Allied obstructed serving it as well.

GM sought the convey of most 1,662 newborn cars and trucks held by Allied in Dearborn, Michigan, and added 42 in Fort Wayne, Indiana, the causa said.

It said Allied has not responded to those requests or given the vehicles.

GM said in the causa the resulting damages module be "substantial" and likely beyond Allied's knowledge to satisfy.

The automaker's lessen with Allied to pull newborn vehicles from plants to dealers and other destinations was for threesome eld beginning on Feb 1, 2010, according to the lawsuit.

The housing is General Motors v. Allied Systems Ltd, U.S. District Court, Eastern District of Michigan, No. 11-11162.

(Additional news by Bernie Woodall in Detroit; redaction by Evangelist Wallace)


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