Just weeks after Ford Motor Co. (NYSE: F) canceled its contract for auto-hauling services by Jack Cooper, the GM-Jack Cooper relationship is also over, at least for now, with both sides claiming it was the other company’s fault.
On Friday, the Detroit Free Press reported that GM had stopped providing Jack Cooper with cars to be transported. Late Friday, GM (NYSE: GM) released a statement that said the relationship had deteriorated to the point that no cars were being loaded and that the auto carrier was taking other steps.
“We can confirm that Jack Cooper Transport management has informed us of their plans to unilaterally stop services to GM, effective immediately,” a statement provided to FreightWaves by GM said. “In light of this material breach of their agreement and the ongoing and timely needs of GM’s business, we have no choice but to implement contingency plans with other providers. We do not anticipate any further disruptions to the delivery of our vehicles.”
But a statement from Jack Cooper laid the blame at the feet of GM.
On Friday, “General Motors informed Jack Cooper that it would pull all business with Jack Cooper, rejecting all proposals that were then on the table to continue working together,” the statement read.
But to emphasize that the relationship is not permanently ended, the statement also said the auto hauler “remains ready, willing and able to negotiate with General Motors regarding a continued business relationship.”
The rupture in the relationship comes about five weeks after Ford Motor Co. canceled the automaker’s contract to haul cars for that company, and a few days after two U.S. senators requested Ford provide it with answers to several questions about the fate of the Ford-Jack Cooper deal.
Jack Cooper workers are organized by the Teamsters.
This is a continuing story.
