WINDSOR, Ont. – The famous Allied Systems “hostage car” standoff is showing signs of weakening.
Chrysler this week reported that it has recovered 500 vehicles it claimed were being held hostage by Allied Systems Holding.
According to the Windsor Star newspaper, GM on the other hand is still accusing the Atlanta-Ga., -based carrier of illegally holding on to 1,704 new GM vehicles worth about $46.6 million.
Allied was a carrier for both companies. The carrier raised its rates last year and contracts were terminated.
At first, according to the newspaper, Allied hung on to about 700 Chrysler minivans after the car company dropped Allied; and Chrysler launched a $16-million lawsuitl. Last week, following a court decision, the first 200 vans were released. .
Court costs must still be assessed.
Meanwhile, GM has accused Allied of “holding hostage 1,704 new GM vehicles, with an estimated value of US$46.6 million, according to the lawsuit.
Allied sought the rate hike after it rescinded a plan to cut its unionized staff’s pay by 20% . The move that would have violated its contract with the Teamsters union.
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