Allied Holdings unit renews GM delivery agreement through 2008

By Caroline Salls

Pittsburgh, Dec. 12 - Allied Holdings, Inc. subsidiary Allied Automotive Group, Inc. renewed its vehicle delivery agreement with General Motors Corp. through Dec. 31, 2008, according to a company news release.

Under the terms of the renewed agreement, Allied has retained all of the vehicle delivery business it currently services for General Motors in North America.

The contract renewal also includes increases in the rates paid by General Motors to Allied for vehicle delivery services during 2006 and 2007.

In addition, the current fuel surcharge program and payment terms for services provided by Allied will remain in place during the term of the renewed agreement.

The agreement is subject to approval by the U.S. Bankruptcy Court for the Northern District of Georgia.

Allied, a Decatur, Ga., distributor of new and used vehicles, filed for bankruptcy on Aug. 1. Its Chapter 11 case number is 05-12515.

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