Jack Cooper Transport going out of business after almost 100 years

[FLYARMY]

I just caught this story about Jack Cooper going under because Ford and GM decided to cancel their contracts with the auto transport company. When I was patiently waiting for my 2022 CT5-V BW to be delivered, during the goat rodeo days, you could actually call them and get a nice lady to tell you when and where your was in the cue. Excellent customer service. I am sad that alot of truckers will be struggling to find work now.

Auto hauler Jack Cooper shutting down: CEO letter to workers

Auto hauler Jack Cooper is closing after recent contract difficulties with Ford and GM.

www.freightwaves.com

 

[1Evil55]

That's a lot of trucks and drivers. Someone, somewhere will need to fill in the gaps. Hopeful for those drivers to recover quickly.

 

[shbox]

Somewhat predictable after the Ford contract cancellation and then wanting to increase rates to GM to try to make up for it.

 

[DZnutz]

great business plan... hang your entire operation on a single contract, which was obviously weak as hell. How do idiots like this survive at all

 

[shbox]

great business plan... hang your entire operation on a single contract, which was obviously weak as hell. How do idiots like this survive at all

Well, it worked for almost 100 years, so there's that.

 

[DZnutz]

There are no 100 year contracts so what are you talking about?

 

[shbox]

There are no 100 year contracts so what are you talking about?

Just saying it worked for a long time. No need to get in a huff.

 

[ngoni]

great business plan... hang your entire operation on a single contract, which was obviously weak as hell. How do idiots like this survive at all

It wasn't a single contract, it was GM and Ford but your point stands. If a business relies on just two customers, even customers as big as Ford and GM, it isn't in a very diversified position should even one of them decide to use someone else.

 

[leres]

It wasn't a single contract, it was GM and Ford but your point stands. If a business relies on just two customers, even customers as big as Ford and GM, it isn't in a very diversified position should even one of them decide to use someone else.

Looking at their website it sure sounds like they do/did a lot more than "finished vehicle transportation" for only Ford and GM...

Here's an interesting article about the industry:

Auto Haulers Eye Initial Jack Cooper Tailwind in Weak Market

Ford decided in January to end its relationship with Jack Cooper, bringing the curtain down on an approximately 40-year relationship. Jack Cooper then lost its biggest and oldest customer, GM, at the start of February.

Also:

GM was similarly tight-lipped. “We can confirm that Jack Cooper Transport management informed us of their plans to unilaterally stop services to GM, effective Feb. 7. In light of this material breach of their agreement and the ongoing and timely needs of GM’s business, we implemented contingency plans with other providers. We do not anticipate any further disruptions to the delivery of our vehicles,” a spokesman said in a statement.

That makes it sound like JCT folded rather than were fired by GM.

The article also indicates vehicle transport is an industry in decline.

 

[KatyTxCT5V]

Looking at their website it sure sounds like they do/did a lot more than "finished vehicle transportation" for only Ford and GM...

Here's an interesting article about the industry:

Auto Haulers Eye Initial Jack Cooper Tailwind in Weak Market



Also:

That makes it sound like JCT folded rather than were fired by GM.

The article also indicates vehicle transport is an industry in decline.

Funny, I was just reading the same articles that you posted.
It also stated-
Dearborn and Detroit, Mich.-based Ford and GM were the cornerstone contracts among eight major original equipment manufacturer customers, sources said.

They handle other businesses such as transportation for rental car companies and more, but when you loose your top two almost back to back within your prime business, that crushed them.

I’m sure there are even more reasons that are not shared to the public for their closure

 

[FLYARMY]

There are no 100 year contracts so what are you talking about?

They were in business for 100 years. Thats better than most businesses. Its just a shame that there is no more loyalty when it come to business relationships anymore.

 

[rubberduck]

They were in business for 100 years. Thats better than most businesses. Its just a shame that there is no more loyalty when it come to business relationships anymore.

I’m guessing they went through several generations of management and maybe the last round was incompetent. Happens all the time.

 

[leres]

Funny, I was just reading the same articles that you posted.
It also stated-
Dearborn and Detroit, Mich.-based Ford and GM were the cornerstone contracts among eight major original equipment manufacturer customers, sources said.

They handle other businesses such as transportation for rental car companies and more, but when you loose your top two almost back to back within your prime business, that crushed them.

I’m sure there are even more reasons that are not shared to the public for their closure

The way I read it, Ford fired JCT and then later JCT quit GM. It also sounds like this industry this industry is not as profitable as it once was.

This reminds me of the whole carbon fiber supplier fiasco.