Last week, we reported that GM ordered transportation supplier Jack Cooper to stop shipping vehicles, to the point that Corvette models that had just been loaded onto a Jack Cooper truck in Bowling Green were subsequently unloaded. Now, the Detroit Free Press has confirmed that General Motors has officially ended its business with Jack Cooper.
The companies cut ties because they could not reach a new agreement after Ford dropped Jack Cooper as a supplier. Jack Cooper was trying to make up for lost business with Ford by trying to get a more favorable contract with GM, but the negotiations ended in losing the business altogether.
In a statement, GM spokesman Kevin Kelly told the Free Press on Saturday, “We can confirm that Jack Cooper Transport management has informed us of their plans to unilaterally stop services to GM, effective immediately. 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.”
Kelly thanked Jack Cooper’s employees on GM’s behalf and added, “We are helping identify positions at other businesses for impacted [Jack Cooper] employees, and we believe that a significant portion will be successfully transferred.”
Although GM said Jack Cooper told them they were done doing business, Jack Cooper CEO Sarah Amico frames the story a little differently. “Yesterday, GM informed Jack Cooper that each of the proposals on the table have been rejected and that GM would be ceasing all business with Jack Cooper,” Amico said.
Amico elaborated in a statement: “General Motors also requested that certain services end as soon as Saturday morning, February 8, 2025. Given General Motors’ unilateral decision, Jack Cooper’s management and Board of Directors were faced with no choice but to take certain actions to protect its employees and other stakeholders. Jack Cooper remains ready, willing, and able to negotiate with General Motors regarding a continued business relationship. Jack Cooper has made additional offers to General Motors and awaits its response.”
It’s estimated that about 1,000 jobs at Jack Cooper were tied to GM business. An anonymous source told the Free Press that losing GM and Ford will put Jack Cooper out of business, which could result in about 2,500 lost jobs.
However, the cars still need to be moved. Many drivers who won’t be Jack Cooper employees anymore will likely continue moving cars for General Motors either as independent contractors or under a different employer.
Here’s a statement from Teamsters union spokesperson Karta Deniz on the fate of the drivers the union represents: “While Jack Cooper may be winding down its operations with Ford and GM, that does not mean the jobs of well-paid, union-protected Teamsters are leaving this industry. This is Teamster work. Hardworking Teamsters have loyally hauled Ford and GM vehicles for generations. That doesn’t end now. Our members in this industry follow the work under our national contract, regardless of who the employer is. The Teamsters will defend our work and our members in carhaul at all costs. No matter what contractor is working with companies like Ford and GM, Teamsters will ultimately be pulling the vehicles. Short-term agreements are being negotiated to permit other carriers to briefly handle loads as Jack Cooper engages in its own negotiations with these carmakers. More permanently, the Teamsters are already securing new commitments with other employers in the space, ensuring our members continue to work under the protections of our national carhaul contract to preserve our historic work with Ford and GM.”
Comments
Great summary George. Jack Cooper has been a huge part of getting vehicles to customers over the years.
When Ford dropped them I was like yup they are gonna go under. Then they thought it was a good idea to raise prices to the remainder of their customers!?
Obviously the company was mismanaged if they felt the need to jack up rates when “delivery fees” are already too damn high. Most cars are over 1-2k delivery fees
I guarantee they were charging higher rates than the competition and Ford and then GM found out their rates were uncompetitive by a large amount
exactly
But at the same time, manufacturers and dealers STILL finger point over WHO controls the actual amount a customer pays for new vehicle transport to their dealer.
Fo example, in 2021 when i ordered my C8 and paid the extra nearly $1,000 for national Corvette Museum delivery…I was STILL charged another $1100 for “dealer transportation-delivery” that went to Jessup Chevrolet in the Palm Springs California area via my bill of sale. Which is where I ordered the vehicle. Despite the fact that after picking the vehicle up at the NCM, with only 5 miles on it, WE drove it cross country, back home to Palm Springs. And right to Jessup Chevrolet for its first routine service, with nearly 5,000 miles on it. I complained to both Jessup Chevrolet management and GM corporate about the double dealer delivery-transportation charge for NO transportation. Other than a couple miles from the factory to the NCM. And each one pointed a finger at the other stating it was not up to them!
From the OC here..I have an order also coming to NCM (hopefully in April – but who knows with GM). Having been in the Cadillac business years ago back east, GM takes the full contract based on the cars they plan on delivering and spreads it across all models. My dad ordered the last Eldorado I could get him and I had arranged for him to get it at the factory. GM said great–but ya still gotta pay the delivery fee. Its not a dealer fee, GM charges it on the invoice to the dealer–regardless who picks it up or where it goes.
The double charge was a big reason I didn’t do the Museum Delivery option on my 2014 C7.
If we were able to get to the truth it may be something that the Teamsters Union is responsible for. Why on earth would GM or the selling dealer be entitled to moneys for services not rendered.
typical union types renegotiating and signed contract because they lost other business from another client. WHY would GM pay to make up their lost business?? What the hell was Cooper and unions thinking??
The Teamsters Union represents the drivers. They had nothing to do with the business dealings between GM and Jack Cooper.
Don’t blame the Union that represents workers for the foolish mistakes that the (Jack Cooper) transport corporation makes while negotiating with GM.
I have long advocated for a GM subsidiary to do the car hauling. Handing out a big chunk of profit to another company is a good idea only to Mary Barra.
I am a former Chevrolet dealer and Cooper has been on the edge many times throughout the last 45 years, they bid so low to get the car contract and diesel goes up and interest rate and insurance etc. GM charge freight equalization to every car. The freight is the same across all states. If you live in Arlington, Tx and you buy a suburban, it is the same as if you live in Seattle. The same thing applies to museum delivery. 🚚
As with most GM suppliers, they are usually running right on the edge. I directly worked in that industry for nearly a decade and can tell you from first hand experience, if you don’t go in with your lowest price possible, you probably are not getting the contract.
Corvette museum delivery fee, what a load of horse $hit, the factory is across the street.
You knew that you were supporting the museum, that is what the is for. You don’t have to do it.
GM should’ve never shutdown Anchor Motor Freight. They owned it. In the 1970s, delivery to East coast dealers from the motor city took roughly two weeks-including rail transit.
Greed kills all
I just paid $800 to a car hauler to transport my car from Michigan to Las Vegas. They came to my home here and pick up the car and delivered it to my location in Las Vegas in 4 days. – If a transport company can do a cross country house to house on a single car, it seems like a company can pick up 7 or 8 autos from one location and deliver them on a well plan route to dealers for less than the $800 I paid for a single auto transport. GM is charging $1400 to $1,995 for transportation charges. Someone is making a killing on these transport fees
It is a undisclosed profit center.
It has nothing to do with the average cost from the factory or port of entry.
feds should get involved but they won’t due to lobbyist donations.
You know the manufacturers are getting some of the skin back on that deal. Just another way to pencil the customers.
When are corvette plant tours going to start backup
Jack Cooper, FAFO.
Bad deal on the delivery charge, was the time it took for vehicle delivery after our 2022 Camaro SS was built & left sitting in a giant lot. Understand part of it might have been rail time wait, but the rest was on the Cooper transport. I too never understood the the major auto manufacturers didn’t have their own subsidiary auto delivery set up.
My bet is that GM pockets at least 1/2 of the delivery charge.
After checking out the CEOs postings and her letter shutting down the country you can see why they severed ties with the company. She is an extremist, super far left, even ran for Senate. Since the we have an America first agenda now, the auto manufacturers are going to want to stay on the good side of the administration, and putting as much space between them and a looney lefty is best for business