The powerful Teamsters union in the United States has alleged that General Motors and Chrysler, as a means of cutting logistics costs, are using non-union trucking companies to deliver finished vehicles. The Teamsters claim that this practice not only puts union jobs at risk, but has potentially detrimental effects on public safety and on the condition of the vehicles when they reach the dealerships.

Car manufacturers have strict rules about the ways in which finished vehicles are loaded and secured when in transit from the factory to the dealership. In a recently-released report, the Teamsters allege that the two Detroit auto giants are changing their practices to allow inexperienced drivers using inappropriate equipment to endanger the vehicles they are delivering to US car buyers.

The report, entitled ‘Damaged when Delivered’, includes photographs of improperly secured vehicles on car transporters belonging to non-union transportation companies.

The website features an open letter from over 160 of GM and Chrysler’s US dealers to the CEOs of the two automakers. The letter states:

“This is killing us. We are in the worst economic crisis since the Great Depression. No segment of the economy has been hit harder than America’s new cart and truck industry. And now we learn that carhaul operations are being transferred to non-union firms, causing the Teamsters to respond by handbilling at our businesses. With protestors at our showroom doors, we are taking a PR hit because you substitute cut rate drivers for the professional car haul drivers who have historically delivered our vehicles. Many of these replacement drivers come with little experience, inadequate training, no accountability and inadequate equipment. Some of them are hauling new cars with flat bed trucks or other equipment that is not designed to protect new cars over long distances.

“Dealers selling American cars already have the most to worry about in our industry during these difficult times. By large numbers, American consumers opposed the bailout of General Motors and Chrysler, which was touted as a job-saving necessity. This latest gambit may finally do us in. We urge you to reconsider. By protecting long-term car haul employees, you protect your brand and you protect us, your network of dealerships.”

In a statement, GM said, “General Motors recently has concluded negotiations with two represented car haulers. There were no significant changes in which companies received the GM business. GM's competitive bidding process includes evaluating carrier safety performance, technical review of capabilities, and equipment validation.  All GM suppliers -- represented and non-represented -- are awarded business based on quality, service, technology and price.”

Safety aspects of the interstate trucking industry are federally regulated in the U.S., and there has long been a mix of union and non-union drivers in all segments of the business.

A Chrysler spokesman said, “Chrysler Group has re-sourced some of its finished vehicle haulaway carrier business to reduce costs and transit time and improve customer satisfaction. This action will result in significant cost reductions totalling tens of millions of dollars, which will improve the company’s competitiveness, and reduced transit time for finished vehicles, which will increase customer satisfaction (i.e., dealers receive the vehicles sooner.)

This action was taken after Chrysler worked with two suppliers, Allied and Cassens, for nearly a year in an effort to improve their competitiveness. This action resulted in a limited number of job losses among the employees of those two companies, who are represented by the International Brotherhood of Teamsters.

In all cases, the resourced business was assigned to carriers who currently provide haulaway business for Chrysler and/or other OEMs.

Chrysler requires all of its haulaway carriers to adhere to the same shipping and quality rules, which are listed in Chrysler's Vehicle Shipping Manual.”

The Teamsters have also launched a website, www.carbuyersbeware.com which highlights the report.