DET News: Car delivery firm seeks Chaper 11

[JazzyChef]

Wayne-based Performance Transportation Services Inc., which hauls new cars and trucks to dealerships around the country, filed for Chapter 11 bankruptcy protection Wednesday, citing lower vehicle output at Detroit automakers, increased diesel fuel prices and escalating labor costs.
The company, with 1,900 hourly workers and 220 salaried, joins a growing list of automotive sector companies that have been forced to reorganize in court because of severe industry challenges.
The private company has posted quarterly losses of $1.3 million to $7.2 million in recent years, according to a bankruptcy petition filed in the Western District of New York.
Revenues are expected to fall to $331 million in 2005 from $343 million in 2004, the company said

Continued at link...

http://www.detnews.com/apps/pbcs.dll...601260381/1148

[mbukukanyau]

Well well... Unions have to compete it seems, Ganging up aganist companies will not work.

[ponchoman49]

These insane oil prices are taking there toll as I said they would.

[GTOTITO]

I just found out that on the 2006 auto show Mike Jackson CEO of Auto nation, wants for the goverment to increase tax on gas $1, so that people will be forced into buying more fuel efficient cars. Who is this guy an eviromentalist? Does he hate SUV's?

[VibenPontiac]

I've done some research in the auto transport space for my job and the power of the unions in the industry is equal to that of the UAW and its an extremly low margin business too. It shouldn't be surprising that the industry is suffering.

[tom3]

Originally Posted by GTOTITO

I just found out that on the 2006 auto show Mike Jackson CEO of Auto nation, wants for the goverment to increase tax on gas $1, so that people will be forced into buying more fuel efficient cars. Who is this guy an eviromentalist? Does he hate SUV's?

Won't need the tax to accomplish this, wait until mid July.

[asim]

Wow even people that move cars are getting screwed over...

[GMCtruck]

I guess they don't haul for Honda or Toyota.

In all seriousness though.... trucking is a tough business to be in, but you would think that company could have started hauling other freight besides cars if business was too slow. But maybe their union contract wouldn't allow that if they were a unionized operation.

[Ramair-WS6]

Originally Posted by asim

Wow even people that move cars are getting screwed over...

Bull$hit. The automotive transport sector of the trucking industry is one of the last strongholds of the Teamsters. The cars are being transported is changing quickly to enclosed carriers instead of open racks and the union companies do not have the $$$$ to effectively make the conversion so companies like Swift Transportation, Wagoneer, BMT have come along with enclosed carriers and lower costs and taken the contracts from the union companies. Swift Transportation has made very large inroads hauling GM cars and trucks in the northeast and they are probably the biggest contributor to the demise of theis company.

The Union tried to get Swift's drivers to unionize but the CEO of Swift, Jerry Moyes said straight out, "If the driver vote for having a union I will sell off all of the car haulers". They never voted for a union.