GM recovers 1,700 vehicles after dispute with hauler
Robert Snell / The Detroit News
Detroit— General Motors Co. has recovered more than 1,700 vehicles that were allegedly being held hostage by a car hauler, the automaker said today.
I know this is serious business, but some of these shenanigans are so outrageous it just makes me smile.
GM finished recovering the new Chevrolet Silverado pickup trucks and Camaro coupes, worth almost $47 million, earlier this week, company spokesman Dan Flores said.
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The "rescue" was disclosed 10 days after GM sued Georgia-based Allied Ltd. in federal court in Detroit. GM wanted immediate possession, arguing the vehicles could depreciate in value and dealers would be deprived of valuable inventory.
The trends lifted U.S. sales of new vehicles by 17 percent from a year earlier to 1.25 million, a healthy rate that shows the auto industry's slow and steady recovery remains on track. The monthly sales pace, adjusted for seasonal differences and projected out for the year, came in at 13.1 million. That's higher than last year, but still far below recent boom years when car sales hit 16 million a year.
The March 11 earthquake in Japan had little impact on sales, although automakers said supplies of some cars could be tighter as spring progresses.
Hope industry execs are paying attention-- the companies that have invested resources in developing high quality, affordable fuel-efficient cars are reaping the benefits. (Ford's plant that produces the Focus used to build trucks.) Sales of expensive gas guzzlers loaded with options are slowing... in some places anyway. I was talking with a driver the other day who said almost all the vehicles he delivers in West Virginia are trucks worth $40,000 or more.
Buyers of certain Toyota and General Motors models are facing unexpected waits as automakers reassign transport work after terminating contracts with an Atlanta-based carhauler.
Cassens, Jack Cooper and United Road are picking up a lot of this freight, which means a huge wave for them and their sub-haulers. However, according to information from today's Automotive News, I would expect slow-downs a bit later. Port traffic will slow because of the Japanese situation (everybody expected that)-- as well as for Japanese-owned assembly plants in North America that rely on some parts from Japan.
Honda is cutting hours by 50% at assembly plants in AL, OH and IN. Subaru announced cuts at Lafayette, IN plant of 50%. Toyota's 18 Japanese assembly plants are closed until April 18th, and there is no guarantee they won't extend those closures.
DETROIT (Reuters) - General Motors Coand Chrysler Group LLC have sued Allied Systems Holding Inc , accusing the auto hauler of "holding hostage" more than 2,400 new cars and trucks.
GM, in a lawsuit filed on Tuesday in U.S. District Court in Detroit, charged that Allied had breached a contract under which it provides car-hauling services for the U.S. automaker.
"Defendant is holding hostage 1,704 new GM vehicles, with an estimated value of $46.6 million," according to the lawsuit. "It simply has no claim to the vehicles; they are GM's property."
In a separate suit, Chrysler said Allied was holding about 700 of its vehicles.
Allied, which calls itself the largest auto transporter in North America, could not immediately be reached for comment.
Hilco Industrial, LLC, and joint venture partner, Maynards Industries, Ltd., announced the successful auction sale of 148 trucks, trailers and auto carriers on behalf of the bankruptcy estate and creditors of Romulus, Michigan-based Accurate Auto Carriers, LLC. The webcast auction, which attracted an international gathering of more than 400 online and on-site bidders, lasted two hours and generated revenues approximately 25% greater than anticipated. Click on the link above for the complete article at Times ColonistI talked to one salesman who bought some units at this auction. He confirmed what they're saying in this article. He said 2007 daycab strap units were going for $160,000; chain units for $120,000. High price probably a function of the lack of daycabs on the market right now. He said it looked to him like Hansen & Adkins were buying quite a bunch, and Waggoners were bidding them up, too.
