Allied Holdings Logistics Subsidiary Expands into Brazilian Automotive Market

9 February 1998
Allied Holdings Logistics Subsidiary Expands into Brazilian Automotive Market

    DECATUR, Ga., Feb. 9 -- Allied Holdings, Inc. ,
announced today that its wholly owned subsidiary, Axis Group, Inc., had
completed the formation of a 50 percent owned venture in Brazil.  The
Brazilian venture, Axis do Brasil, is a partnership with Coimex Trading
Company of Vitoria, Brazil, which is one of the largest trading companies in
South America.  Axis do Brasil will be an equity partner in a newly formed
Brazilian firm, Axis Sinimbu Logistica ("ASL"), which has annual revenues of
$145 million and approximately 20% of the Brazilian auto hauling market.  ASL
will provide supply chain logistics services for the automotive industry in
Mercosur.
    Commenting on the transaction, A. Mitchell Poole, Jr., president and chief
operating officer of Allied Holdings, stated, "Axis' entry into the Mercosur
automotive market is a strategic decision enabling it to better serve its auto
industry customers, and fits with Allied Holdings long-term growth strategy.
Many of the major customers to be served by ASL are those currently served by
Allied in the U.S.,"  Poole said.
    Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in the automotive distribution business.  The Allied Automotive Group
is the largest motor carrier in North America specializing in the delivery of
automobiles and light trucks.  The Automotive Group transports for all major
domestic and foreign manufacturers primarily from manufacturing plants, rail
ramps, ports and auctions to automobile dealers throughout the United States
and Canada.  The Axis Group identifies new and innovative methods of
distribution as well as better uses of traditional and emerging technologies
to help customers solve the most complex transportation, inventory management
and logistics problems.  Axis is the global logistics services arm of the
Allied Holdings, Inc. family of companies which specialize in distribution and
logistics services for the automotive industry.

SOURCE  Allied Holdings, Inc.