• Knight files breach of contract suit

    Knight Transportation recently filed a breach of contract suit against Freightliner LCC, claiming the truck manufacturer failed to honor its four-year rolling truck purchase agreement. "We are currently in litigation with one of our major tractor suppliers concerning new equipment purchase prices and tractor repurchase commitments made to us," the company said in its quarterly report. "We initiated
    June 6, 2002
    Knight Transportation recently filed a breach of contract suit against Freightliner LCC, claiming the truck manufacturer failed to honor its four-year rolling truck purchase agreement.

    "We are currently in litigation with one of our major tractor suppliers concerning new equipment purchase prices and tractor repurchase commitments made to us," the company said in its quarterly report. "We initiated this litigation to protect our contractual and other rights."

    During a recent conference in New York sponsored by Bear, Stearns & Co., Knight chairman Kevin Knight recently identified Freightliner as the major tractor supplier. Freightliner officials said they would not comment on any pending litigation.

    In 1999, Freightliner was one of several companies said to have been generating sales by guaranteeing residual or “buyback” prices for its tractors.

    In the meantime, to mitigate any losses, the carrier said it has ordered additional revenue equipment from an alternative supplier and expects deliveries to begin this month.

    News sources said Knight would accept 40 to 50 additional tractors from Freightliner, and the alternative supplier for the additional planed purchase of 250 tractors this year.

    About the Author

    Tim Parry

    Tim Parry is a former FleetOwner editor. 

    Voice your opinion!

    To join the conversation, and become an exclusive member of FleetOwner, create an account today!

    Sign up for our free eNewsletters

    Latest from News

    Dana Inc.
    Dana Spicer HVT1 transmission combines hydrostatic and mechanical drives in an integrated 90-degree gearbox to provide precise low-speed maneuvering control.
    In a move that will impact vocational fleets, Allison aims to integrate Dana's off-highway drivetrain and propulsion technologies into its expansive commercial vehicle supplier...
    CSAA
    Officials from CSAA gathered with the Collision Engineering Career Alliance, Contra Costa administration, and Collision Engineering students for a check presentation.
    Hyundai, Carrier, CSAA Insurance Group, and Bridgestone make donations. U-Haul offers disaster help.
    Ford
    2025 maverick
    NHTSA’s latest safety notices feature engine failure, overloaded electrical systems, and more.