General Motors has issued a temporary stop of all its vehicle shipments due to “intense” contract negotiations with its longstanding auto hauler partner, Jack Cooper.
A plant employee at General Motors Bowling Green Assembly Plant in Kentucky told Detroit Free Press that he “stood there and saw them unload 50 cars from the trucks,” that had just been loaded after the stop order was given by GM.
“They have never done that before,” the employee said.
GM is currently in “intense” negotiations with Jack Cooper over a new contract. The company has issued the temporary stop out of an “an abundance of caution” over the negotiations. GM is attempting to mitigate any potential risk to their vehicles, which are still being hauled across the country by Jack Cooper, should the negotiations take a negative turn.
The contract negotiation comes after Ford Motor Company cancelled its contract with Jack Cooper in January, forcing the trucking company to seek more money from its existing customers.
“Jack Cooper Transport has been a preferred supplier to GM for decades. We are negotiating in good faith with their management team and private equity lender, Cerberus Capital Management. We hope to reach a fair resolution that permits GM to run our business responsibly and serve our customers while allowing (Jack Cooper) to continue operating as an ongoing business and employer,” said GM spokesman Kevin Kelly.
“We are relying on their previous statement that they are honoring their contract with Jack Cooper,” said Jack Cooper spokeswoman Jennifer Holdsworth.