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Allied Transport System Goes Head to Head with Chrysler and GM

Allied Systems Holdings is the contract company that most automakers consider when they are needing to transport their vehicles across the United States. However, after the recent fiasco with the company, most automakers are now thinking twice about going through that move. Chrysler filed a lawsuit against the company stating that the company was holding 700 minivans because Chrysler refused to sign the contract with the company again because they had raised their rates. However, this does not seem to be a lone act. GM recently filed a lawsuit against the company, stating that they were holding $46.6 million worth of new GM cars because they also refused to sign a new contract with the company. 

However, Chrysler has gained access to their vehicles, so it is unclear as to whether they will continue with the lawsuit or not. GM says that they have access to the 1,704 vehicles that were being held by the company as well. GM has already switched to a new shipping company and are slowly removing the vehicles from the grasps of Allied in order to take these cars to the dealers that have been anticipating them. 

What most people are wondering is just how was Allied able to do this? It would seem that the law would intervene in order to get the stolen vehicles back to the companies, however, it is not that easy. The company maintained that the automakers were in violation of their terms of contracts, which means that they can very easily keep shipments when they see this happening. One thing is for certain, Allied has lost some major customers that they relied on in order to pay their workers. Those that work for Allied may want to reconsider a new profession since if the companies pursue these lawsuits it could be a long time before Allied is able to get back on to their feet.