<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 - FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,
         2000

                                       or

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the transition period from                  to
                               ----------------    ----------------

         Commission File Number:    0-22276

                              ALLIED HOLDINGS, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           GEORGIA                                     58-0360550
--------------------------------------------------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)

            SUITE 200, 160 CLAIREMONT AVENUE, DECATUR, GEORGIA 30030
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (404) 373-4285
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. [X] Yes [ ] No

Outstanding common stock, No par value at October 28, 2000.........8,271,359


                TOTAL NUMBER OF PAGES INCLUDED IN THIS REPORT: 22


                                       1
<PAGE>   2

                                      INDEX

                                     PART I

                              FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                           PAGE

ITEM 1:     FINANCIAL STATEMENTS
<S>      <C>                                                               <C>
         Consolidated Balance Sheets as of  September 30, 2000 and
           December 31, 1999 .............................................    3

         Consolidated Statements of Operations for the Three and Nine
           Month Periods Ended September 30, 2000 and 1999 ...............    4

         Consolidated Statements of Cash Flows for the Nine
           Month Periods Ended September 30, 2000 and 1999 ...............    5

         Notes to Consolidated Financial Statements ......................    6

ITEM 2

         Management's Discussion and Analysis of Financial
           Condition and Results of Operations ...........................   16


                                     PART II

                                OTHER INFORMATION

ITEM 1


         Legal Proceedings ...............................................   21


ITEM 6

         Exhibits and Reports on Form 8-K ................................   21
         Signature Page ..................................................   22
</TABLE>


                                       2
<PAGE>   3

PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS

                     ALLIED HOLDINGS, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                   SEPTEMBER 30     DECEMBER 31
                                                                                       2000             1999
                                                                                   ------------     -----------
                                                                                    (UNAUDITED)
                                     ASSETS

<S>                                                                                <C>              <C>
CURRENT ASSETS:
          Cash and cash equivalents                                                 $   4,604       $  13,984
          Short-term investments                                                       58,369          44,325
          Receivables, net of allowance for doubtful accounts                         124,764         121,058
          Inventories                                                                   7,916           7,949
          Deferred tax assets                                                          16,369          16,119
          Prepayments and other current assets                                         23,779          22,182
                                                                                    ---------       ---------
                     Total current assets                                             235,801         225,617
                                                                                    ---------       ---------

PROPERTY AND EQUIPMENT, NET                                                           258,684         287,838
                                                                                    ---------       ---------

OTHER ASSETS:
          Goodwill, net                                                                95,986          93,104
          Other                                                                        42,770          43,361
                                                                                    ---------       ---------
                     Total other assets                                               138,756         136,465
                                                                                    ---------       ---------
                     Total assets                                                   $ 633,241       $ 649,920
                                                                                    =========       =========
                                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
          Current maturities of long-term debt                                      $     150       $     185
          Trade accounts payable                                                       37,321          42,931
          Accrued liabilities                                                          85,280          85,655
                                                                                    ---------       ---------
                     Total current liabilities                                        122,751         128,771
                                                                                    ---------       ---------

LONG-TERM DEBT, LESS CURRENT MATURITIES                                               330,907         330,101
                                                                                    ---------       ---------

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS                                            10,336          11,973
                                                                                    ---------       ---------

DEFERRED INCOME TAXES                                                                  35,560          37,409
                                                                                    ---------       ---------

OTHER LONG-TERM LIABILITIES                                                            67,648          74,752
                                                                                    ---------       ---------

STOCKHOLDERS' EQUITY:
          Common stock, no par value; 20,000 shares authorized, 8,246 and
                 7,997 shares outstanding at September 30,
                 2000 and December 31, 1999, respectively                                   0               0
          Additional paid-in capital                                                   45,515          44,437
          Retained earnings                                                            28,147          26,903
          Cumulative other comprehensive income, net of tax                            (7,155)         (4,240)
          Common stock in treasury, at cost, 62 and 29 shares at September 30,
                   2000 and December 31, 1999, respectively                              (468)           (186)
                                                                                    ---------       ---------
                     Total stockholders' equity                                        66,039          66,914
                                                                                    ---------       ---------
                     Total liabilities and stockholders' equity                     $ 633,241       $ 649,920
                                                                                    =========       =========
</TABLE>

The accompanying notes are an integral part of these consolidated balance
sheets.

                                        3

<PAGE>   4

                     ALLIED HOLDINGS, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                       FOR THE THREE MONTHS ENDED      FOR THE NINE MONTHS ENDEDD
                                                               SEPTEMBER 30                    SEPTEMBER 30
                                                       --------------------------      ---------------------------
                                                          2000             1999           2000             1999
                                                       ----------       ---------      ----------       ----------
<S>                                                    <C>              <C>            <C>              <C>
REVENUES                                                $ 236,347       $ 240,058       $ 815,128       $ 788,291
                                                        ---------       ---------       ---------       ---------

OPERATING EXPENSES:
  Salaries, wages and fringe benefits                     132,704         134,198         441,817         428,971
  Operating supplies and expenses                          40,953          41,345         140,837         135,827
  Purchased transportation                                 23,513          22,866          79,967          77,395
  Insurance and claims                                     11,226          11,695          36,369          37,572
  Operating taxes and licenses                              9,650           8,743          31,491          30,555
  Depreciation and amortization                            15,051          14,865          45,686          43,242
  Rents                                                     2,114           2,254           6,613           6,622
  Communications and utilities                              1,335           2,062           5,550           6,489
  Other operating expenses                                  2,785           3,563           8,534           8,489
                                                        ---------       ---------       ---------       ---------
      Total operating expenses                            239,331         241,591         796,864         775,162
                                                        ---------       ---------       ---------       ---------
      Operating (loss) income                              (2,984)         (1,533)         18,264          13,129
                                                        ---------       ---------       ---------       ---------

OTHER INCOME (EXPENSE):
  Equity in earnings of joint ventures, net of tax          1,502           1,519           4,201           1,616
  Interest expense                                         (8,321)         (8,129)        (25,070)        (23,296)
  Interest income                                           1,644             716           3,653           1,336
                                                        ---------       ---------       ---------       ---------
                                                           (5,175)         (5,894)        (17,216)        (20,344)
                                                        ---------       ---------       ---------       ---------

(LOSS) INCOME BEFORE INCOME TAXES                          (8,159)         (7,427)          1,048          (7,215)

INCOME TAX BENEFIT                                          3,549           3,604             196           3,519
                                                        ---------       ---------       ---------       ---------

NET (LOSS) INCOME                                       $  (4,610)      $  (3,823)      $   1,244       $  (3,696)
                                                        =========       =========       =========       =========


PER COMMON SHARE - BASIC AND DILUTED                    $   (0.58)      $   (0.49)      $    0.16       $   (0.47)
                                                        =========       =========       =========       =========


COMMON SHARES OUTSTANDING - BASIC AND DILUTED               7,961           7,818           7,924           7,818
                                                        =========       =========       =========       =========
</TABLE>

  The accompanying notes are an integral part of these consolidated statements.


                                        4
<PAGE>   5

                     ALLIED HOLDINGS, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                   FOR THE NINE MONTHS ENDED
                                                                                                         SEPTEMBER 30
                                                                                                   -------------------------
                                                                                                      2000           1999
                                                                                                   ---------      ----------
<S>                                                                                                <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
           Net income (loss)                                                                        $  1,244       $ (3,696)
                                                                                                    --------       --------
           Adjustments to reconcile net income (loss) to net cash provided by
           (used in) operating activities:
                        Depreciation and amortization                                                 45,686         43,242
                        Loss on sale of property and equipment                                            97            781
                        Deferred income taxes                                                            104          2,415
                        Compensation expense related to stock options and grants                         452            441
                        Equity in earnings of joint ventures                                          (4,201)        (1,616)
                        Amortization (payment) of Teamsters Union signing bonus                        1,850         (9,654)
                        Change in operating assets and liabilities:
                             Receivables, net of allowance for doubtful accounts                      (2,366)       (17,034)
                             Inventories                                                                  (7)          (933)
                             Prepayments and other current assets                                     (1,717)        (2,655)
                             Trade accounts payable                                                   (6,587)        (8,089)
                             Accrued liabilities                                                      (8,633)       (15,239)
                                                                                                    --------       --------
                                           Total adjustments                                          24,678         (8,341)
                                                                                                    --------       --------
                                           Net cash provided by (used in) operating activities        25,922        (12,037)
                                                                                                    --------       --------


CASH FLOWS FROM INVESTING ACTIVITIES:
           Purchases of property and equipment                                                       (15,972)       (38,290)
           Proceeds from sale of property and equipment                                                  799          1,108
           Purchase of business, net of cash acquired                                                 (8,185)        (1,879)
           Investment in joint venture                                                                     0            (80)
           (Increase) decrease in short-term investments                                             (14,044)         7,425
           Increase in the cash surrender value of life insurance                                       (128)           (47)
                                                                                                    --------       --------
                                           Net cash used in investing activities                     (37,530)       (31,763)
                                                                                                    --------       --------


CASH FLOWS FROM FINANCING ACTIVITIES:
           Proceeds from issuance of long-term debt, net                                                 771         55,930
           Proceeds from issuance of common stock                                                        626            211
           Repurchase of common stock                                                                   (282)             0
           Other, net                                                                                  1,894            841
                                                                                                    --------       --------
                                           Net cash provided by financing activities                   3,009         56,982
                                                                                                    --------       --------


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS                                            (781)           107


NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                  (9,380)        13,289


CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                                        13,984         21,977
                                                                                                    --------       --------


CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                          $  4,604       $ 35,266
                                                                                                    ========       ========

</TABLE>

  The accompanying notes are an integral part of these consolidated statements.


                                        5
<PAGE>   6

                     ALLIED HOLDINGS, INC. AND SUBSIDIARIES
             Notes to Consolidated Financial Statements (Unaudited)


Note 1.  Basis of Presentation

         The unaudited consolidated financial statements included herein have
         been prepared pursuant to the rules and regulations of the Securities
         and Exchange Commission. Accordingly, they do not include all of the
         information and footnotes required by accounting principles generally
         accepted in the United States for complete financial statements. The
         statements contained herein reflect all adjustments, all of which are
         of a normal, recurring nature, which are, in the opinion of management,
         necessary to present fairly the financial condition, results of
         operations and cash flows for the periods presented. Operating results
         for the three and nine month periods ended September 30, 2000 are not
         necessarily indicative of the results that may be expected for the year
         ended December 31, 2000. The interim financial statements should be
         read in conjunction with the financial statements and notes thereto of
         Allied Holdings, Inc. and Subsidiaries, (the "Company") included in the
         Company's 1999 Annual Report on Form 10-K.

Note 2.  Long-Term Debt and Supplemental Guarantor Information

         On September 30, 1997, the Company issued $150 million of 8 5/8 %
         senior notes (the "Notes") through a private placement. Subsequently,
         the senior notes were registered with the Securities and Exchange
         Commission. The net proceeds from the Notes were used to fund the
         acquisition of Ryder Automotive Carrier Services, Inc. and RC
         Management Corp., pay related fees and expenses, and reduce outstanding
         indebtedness. The Company's obligations under the Notes are guaranteed
         by substantially all of the subsidiaries of the Company (the "Guarantor
         Subsidiaries"). Haul Insurance Ltd., Arrendadora de Equipo Para el
         Transporte de Automoviles, S. de R.L. de C.V., Axis Logistica, S. de
         R.L. de C.V. and Axis Netherlands C.V. do not guarantee the Company's
         obligations under the Notes (the "Non-guarantor Subsidiaries"). The
         following condensed consolidating balance sheets, statements of
         operations and statements of cash flows present the financial
         statements of the parent company, and the combined financial statements
         of the Guarantor Subsidiaries and Non-guarantor subsidiaries. The
         Guarantors are jointly and severally liable for the Company's
         obligations under the Notes and there are no restrictions on the
         ability of the Guarantors to make distributions to the Company.


                                       6
<PAGE>   7

                       SUPPLEMENTAL GUARANTOR INFORMATION
                              ALLIED HOLDINGS, INC.
               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                               SEPTEMBER 30, 2000
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                             ALLIED     GUARANTOR     NON-GUARANTOR
                                                            HOLDINGS   SUBSIDIARIES   SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
                                                            ---------  ------------   ------------- ------------ ------------
<S>                                                         <C>        <C>            <C>           <C>          <C>
CURRENT ASSETS:
     Cash and cash equivalents                              $     380    $   3,199      $  1,025    $      --     $   4,604
     Short-term investments                                        --           --        58,369           --        58,369
     Receivables, net of allowance for doubtful accounts           94      123,462         1,208           --       124,764
     Inventories                                                   --        7,916            --           --         7,916
     Deferred tax asset-current                                    --       17,542           582       (1,755)       16,369
     Prepayments and other current assets                       1,738       21,760           281           --        23,779
                                                            ---------    ---------      --------    ---------     ---------
            Total current assets                                2,212      173,879        61,465       (1,755)      235,801
                                                            ---------    ---------      --------    ---------     ---------

PROPERTY AND EQUIPMENT, NET                                     8,625      247,132         2,927           --       258,684

OTHER ASSETS:
     Goodwill, net                                              1,662       94,324            --           --        95,986
     Other                                                      6,878       25,244        10,648           --        42,770
     Deferred tax asset-noncurrent                             21,580           --            --      (21,580)           --
     Intercompany receivables                                 274,410           --            --     (274,410)           --
     Investment in subsidiaries                                93,834       13,591            --     (107,425)           --
                                                            ---------    ---------      --------    ---------     ---------
            Total other assets                                398,364      133,159        10,648     (403,415)      138,756
                                                            ---------    ---------      --------    ---------     ---------
            Total assets                                    $ 409,201    $ 554,170      $ 75,040    $(405,170)    $ 633,241
                                                            =========    =========      ========    =========     =========


CURRENT LIABILITIES:
     Current maturities of long-term debt                   $      --    $     150      $     --    $      --     $     150
     Trade accounts payable                                       469       36,650           202           --        37,321
     Deferred tax liability                                     1,755           --            --       (1,755)           --
     Intercompany payables                                         --      273,672           738     (274,410)           --
     Accrued liabilities                                       10,248       63,676        11,356           --        85,280
                                                            ---------    ---------      --------    ---------     ---------
            Total current liabilities                          12,472      374,148        12,296     (276,165)      122,751
                                                            ---------    ---------      --------    ---------     ---------

LONG-TERM DEBT, less current maturities                       330,690          217            --           --       330,907

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS                        --       10,336            --           --        10,336

DEFERRED INCOME TAXES                                              --       57,140            --      (21,580)       35,560

OTHER LONG-TERM LIABILITIES                                        --       33,832        33,816           --        67,648

STOCKHOLDERS' EQUITY:
     Common stock, no par value                                    --           --            --           --            --
     Additional paid-in capital                                45,515       81,523        13,470      (94,993)       45,515
     Retained Earnings                                         28,147        5,861        18,045      (23,906)       28,147
     Cumulative other comprehensive income, net of tax         (7,155)      (6,887)       (2,587)      11,474        (7,155)
     Less treasury stock                                         (468)          --            --           --          (468)
                                                            ---------    ---------      --------    ---------     ---------
            Total stockholders' equity                         66,039       78,497        28,928     (107,425)       66,039
                                                            ---------    ---------      --------    ---------     ---------
            Total liabilities and stockholders' equity      $ 409,201    $ 554,170      $ 75,040    $(405,170)    $ 633,241
                                                            =========    =========      ========    =========     =========
</TABLE>


                                       7
<PAGE>   8


                       SUPPLEMENTAL GUARANTOR INFORMATION
                              ALLIED HOLDINGS, INC.
               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                                DECEMBER 31, 1999
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                              ALLIED       GUARANTOR    NON-GUARANTOR
                                                             HOLDINGS     SUBSIDIARIES   SUBSIDIARIES   ELIMINATIONS  CONSOLIDATED
                                                            ---------     ------------  -------------   ------------  ------------
<S>                                                         <C>           <C>           <C>             <C>           <C>
CURRENT ASSETS:
     Cash and cash equivalents                              $   1,852       $   3,179     $   8,953       $      --     $  13,984
     Short-term investments                                        --              --        44,325              --        44,325
     Receivables, net of allowance for doubtful accounts           14         119,978         1,066              --       121,058
     Inventories                                                   --           7,949            --              --         7,949
     Deferred tax asset-current                                 1,558          14,561            --              --        16,119
     Prepayments and other current assets                       1,611          20,257           314              --       22,1821
                                                            ---------       ---------     ---------       ---------     ---------
        Total current assets                                    5,035         165,924        54,658              --       225,617
                                                            ---------       ---------     ---------       ---------     ---------

PROPERTY AND EQUIPMENT, NET                                        --         285,665         2,173              --       287,838

OTHER ASSETS:
     Goodwill, net                                              1,751          91,353            --              --        93,104
     Other                                                      7,665          24,509        11,187              --        43,361
     Deferred tax asset-noncurrent                             17,004              --            --         (17,004)           --
     Intercompany receivables                                 262,361              --                      (262,361)           --
     Investment in subsidiaries                               112,848          13,571            --        (126,419)           --
                                                            ---------       ---------     ---------       ---------     ---------
        Total other assets                                    401,629         129,433        11,187        (405,784)      136,465
                                                            ---------       ---------     ---------       ---------     ---------
        Total assets                                        $ 406,664       $ 581,022     $  68,018       $(405,784)    $ 649,920
                                                            =========       =========     =========       =========     =========


CURRENT LIABILITIES:
     Current maturities of long-term debt                   $      --       $     185     $      --       $      --     $     185
     Trade accounts payable                                       345          42,089           497                        42,931
     Intercompany payables                                         --         260,977         1,384        (262,361)           --
     Accrued liabilities                                        9,405          66,350         9,900              --        85,655
                                                            ---------       ---------     ---------       ---------     ---------
        Total current liabilities                               9,750         369,601        11,781        (262,361)      128,771
                                                            ---------       ---------     ---------       ---------     ---------

LONG-TERM DEBT, less current maturities                       330,000             101            --              --       330,101

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS                        --          11,973            --              --        11,973

DEFERRED INCOME TAXES                                              --          54,413            --         (17,004)       37,409

OTHER LONG-TERM LIABILITIES                                        --          45,237        29,515              --        74,752

STOCKHOLDERS' EQUITY:
     Common stock, no par value                                    --              --            --              --            --
     Additional paid-in capital                                44,437          81,449        13,229         (94,678)       44,437
     Retained Earnings                                         26,903          23,485        14,984         (38,469)       26,903
     Cumulative other comprehensive income, net of tax         (4,240)         (5,237)       (1,491)          6,728o
        (4,240)
     Less treasury stock at cost                                 (186)             --            --              --          (186)
                                                            ---------       ---------     ---------       ---------     ---------
        Total stockholders' equity                             66,914          99,697        26,722        (126,419)       66,914
                                                            ---------       ---------     ---------       ---------     ---------
        Total liabilities and stockholders' equity          $ 406,664       $ 581,022     $  68,018       $(405,784)    $ 649,920
                                                            =========       =========     =========       =========     =========
</TABLE>


                                       8
<PAGE>   9

                       SUPPLEMENTAL GUARANTOR INFORMATION
                              ALLIED HOLDINGS, INC
              SUPPLEMENTAL CONDENSED CONSOLIDATED INCOME STATEMENT
                      NINE MONTHS ENDED SEPTEMBER 30, 2000
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                                 ALLIED        GUARANTOR    NON-GUARANTOR
                                                                HOLDINGS     SUBSIDIARIES   SUBSIDIARIES   ELIMINATIONS CONSOLIDATED
                                                               ----------    ------------   -------------  ------------ ------------
<S>                                                            <C>           <C>            <C>            <C>          <C>
REVENUES                                                        $  3,728       $ 813,804     $ 25,574       $(27,978)    $ 815,128
                                                                --------       ---------     --------       --------     ---------
OPERATING EXPENSES:
     Salaries, wages and fringe benefits                           3,609         438,208           --             --       441,817
     Operating supplies and expenses                                 856         139,953           28             --       140,837
     Purchased transportation                                         --          79,967           --             --        79,967
     Rents                                                            57           6,556           --             --         6,613
     Insurance and claims                                             --          36,042       24,577        (24,250)       36,369
     Operating taxes and licenses                                      8          31,483           --             --        31,491
     Depreciation and amortization                                   321          45,085          280             --        45,686
     Communications and utilities                                     12           5,538           --             --         5,550
     Other operating expenses                                      1,549          10,562          151         (3,728)        8,534
                                                                --------       ---------     --------       --------     ---------
               Total operating expenses                            6,412         793,394       25,036        (27,978)      796,864
                                                                --------       ---------     --------       --------     ---------
               Operating (loss) income                            (2,684)         20,410          538             --        18,264
                                                                --------       ---------     --------       --------     ---------

OTHER INCOME (EXPENSE):
     Equity in earnings (loss) of joint ventures, net of tax          --           4,359         (158)            --         4,201
     Interest expense                                            (22,111)        (25,591)        (372)        23,004       (25,070)
     Interest income                                              22,977             294        3,386        (23,004)        3,653
     Equity in net income of subsidiaries                          2,079              --           --         (2,079)           --
                                                                --------       ---------     --------       --------     ---------
                                                                   2,945         (20,938)       2,856         (2,079)      (17,216)
                                                                --------       ---------     --------       --------     ---------
INCOME (LOSS) BEFORE INCOME TAXES                                    261            (528)       3,394         (2,079)        1,048

INCOME TAX BENEFIT (PROVISION)                                       983            (124)        (663)            --           196
                                                                --------       ---------     --------       --------     ---------

NET INCOME (LOSS)                                               $  1,244       $    (652)    $  2,731       $ (2,079)    $   1,244
                                                                ========       =========     ========       ========     =========
</TABLE>


              SUPPLEMENTAL CONDENSED CONSOLIDATED INCOME STATEMENT
                      NINE MONTHS ENDED SEPTEMBER 30, 1999
                                  IN THOUSANDS


<TABLE>
<CAPTION>
                                                            ALLIED       GUARANTOR      NON-GUARANTOR
                                                           HOLDINGS     SUBSIDIARIES    SUBSIDIARIES    ELIMINATIONS   CONSOLIDATED
                                                           --------     ------------    -------------   ------------   ------------
<S>                                                        <C>          <C>             <C>             <C>            <C>
REVENUES                                                   $  3,741       $ 787,736       $ 24,133       $(27,319)      $ 788,291
                                                           --------       ---------       --------       --------       ---------

OPERATING EXPENSES:
     Salaries, wages and fringe benefits                      3,126         425,845             --             --         428,971
     Operating supplies and expenses                          1,089         134,727             11             --         135,827
     Purchased transportation                                    --          77,395             --             --          77,395
     Rents                                                       31           6,591             --             --           6,622
     Insurance and claims                                       131          38,669         22,350        (23,578)         37,572
     Operating taxes and licenses                                26          30,529             --             --          30,555
     Depreciation and amortization                              192          42,808            242             --          43,242
     Communications and utilities                                25           6,464             --             --           6,489
     Other operating expenses                                 1,412          10,094            724         (3,741)          8,489
                                                           --------       ---------       --------       --------       ---------
               Total operating expenses                       6,032         773,122         23,327        (27,319)        775,162
                                                           --------       ---------       --------       --------       ---------
               Operating (loss) income                       (2,291)         14,614            806             --          13,129
                                                           --------       ---------       --------       --------       ---------

OTHER INCOME (EXPENSE):
     Equity in earnings of joint ventures, net of tax            --           1,307            309             --           1,616
     Interest expense                                       (22,763)        (24,243)          (315)        24,025         (23,296)
     Interest income                                         24,016             370            975        (24,025)          1,336
     Equity in net loss of subsidiaries                      (7,313)             --             --          7,313              --
                                                           --------       ---------       --------       --------       ---------
                                                             (6,060)        (22,566)           969          7,313         (20,344)
                                                           --------       ---------       --------       --------       ---------
(LOSS) INCOME BEFORE INCOME TAXES                            (8,351)         (7,952)         1,775          7,313          (7,215)

INCOME TAX BENEFIT (PROVISION)                                4,655            (463)          (673)            --           3,519
                                                           --------       ---------       --------       --------       ---------

NET (LOSS) INCOME                                          $ (3,696)      $  (8,415)      $  1,102       $  7,313       $  (3,696)
                                                           ========       =========       ========       ========       =========
</TABLE>


                                       9
<PAGE>   10

                       SUPPLEMENTAL GUARANTOR INFORMATION

                              ALLIED HOLDINGS, INC
              SUPPLEMENTAL CONDENSED CONSOLIDATED INCOME STATEMENT
                      THREE MONTHS ENDED SEPTEMBER 30, 2000
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                                ALLIED    GUARANTOR    NON-GUARANTOR
                                                               HOLDINGS  SUBSIDIARIES  SUBSIDIARIES    ELIMINATIONS    CONSOLIDATED
                                                               --------  ------------  -------------   ------------    ------------
<S>                                                            <C>       <C>           <C>             <C>             <C>
REVENUES                                                       $ 1,243     $ 235,973      $ 8,392        $(9,261)       $ 236,347
                                                               -------     ---------      -------        -------        ---------

OPERATING EXPENSES:
    Salaries, wages and fringe benefits                          1,833       130,871           --             --          132,704
    Operating supplies and expenses                                 56        40,885           12             --           40,953
    Purchased transportation                                        --        23,513           --             --           23,513
    Rents                                                           19         2,095           --             --            2,114
    Insurance and claims                                            --        10,813        8,431         (8,018)          11,226
    Operating taxes and licenses                                     2         9,648           --             --            9,650
    Depreciation and amortization                                  262        14,693           96             --           15,051
    Communications and utilities                                     4         1,331           --             --            1,335
    Other operating expenses                                       273         3,755           --         (1,243)           2,785
                                                               -------     ---------      -------        -------        ---------
              Total operating expenses                           2,449       237,604        8,539         (9,261)         239,331
                                                               -------     ---------      -------        -------        ---------
              Operating loss                                    (1,206)       (1,631)        (147)            --           (2,984)
                                                               -------     ---------      -------        -------        ---------

OTHER INCOME (EXPENSE):
    Equity in earnings (loss) of joint ventures, net of tax         --         1,557          (55)            --            1,502
    Interest expense                                            (7,216)       (8,569)        (133)         7,597           (8,321)
    Interest income                                              7,595            94        1,552         (7,597)           1,644
    Equity in net loss of subsidiaries                          (7,400)           --           --          7,400               --
                                                               -------     ---------      -------        -------        ---------
                                                                (7,021)       (6,918)       1,364          7,400           (5,175)
                                                               -------     ---------      -------        -------        ---------
(LOSS) INCOME BEFORE INCOME TAXES                               (8,227)       (8,549)       1,217          7,400           (8,159)

INCOME TAX BENEFIT (PROVISION)                                   3,617           (40)         (28)            --            3,549
                                                               -------     ---------      -------        -------        ---------

NET (LOSS) INCOME                                              $(4,610)    $  (8,589)     $ 1,189        $ 7,400        $  (4,610)
                                                               =======     =========      =======        =======        =========
</TABLE>

              SUPPLEMENTAL CONDENSED CONSOLIDATED INCOME STATEMENT
                      THREE MONTHS ENDED SEPTEMBER 30, 1999
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                           ALLIED     GUARANTOR     NON-GUARANTOR
                                                          HOLDINGS   SUBSIDIARIES   SUBSIDIARIES    ELIMINATIONS  CONSOLIDATED
                                                          --------   ------------   -------------   ------------  ------------
<S>                                                       <C>        <C>            <C>             <C>           <C>
REVENUES                                                  $ 1,247     $ 239,815       $ 8,103        $(9,107)      $ 240,058
                                                          -------     ---------       -------        -------       ---------

OPERATING EXPENSES:
    Salaries, wages and fringe benefits                       815       133,383            --             --         134,198
    Operating supplies and expenses                           347        40,987            11             --          41,345
    Purchased transportation                                   --        22,866            --             --          22,866
    Rents                                                      18         2,236            --             --           2,254
    Insurance and claims                                       44        12,063         7,448         (7,860)         11,695
    Operating taxes and licenses                                5         8,738            --             --           8,743
    Depreciation and amortization                              64        14,711            90             --          14,865
    Communications and utilities                                6         2,056            --             --           2,062
    Other operating expenses                                  515         4,451          (156)        (1,247)          3,563
                                                          -------     ---------       -------        -------       ---------
              Total operating expenses                      1,814       241,491         7,393         (9,107)        241,591
                                                          -------     ---------       -------        -------       ---------
              Operating (loss) income                        (567)       (1,676)          710             --          (1,533)
                                                          -------     ---------       -------        -------       ---------

OTHER INCOME (EXPENSE):
    Equity in earnings of joint ventures, net of tax           --         1,365           154             --           1,519
    Interest expense                                       (7,900)       (8,592)         (177)         8,540          (8,129)
    Interest income                                         8,533            58           665         (8,540)            716
    Equity in net loss of subsidiaries                     (7,022)           --            --          7,022              --
                                                          -------     ---------       -------        -------       ---------
                                                           (6,389)       (7,169)          642          7,022          (5,894)
                                                          -------     ---------       -------        -------       ---------
(LOSS) INCOME BEFORE INCOME TAXES                          (6,956)       (8,845)        1,352          7,022          (7,427)

INCOME TAX BENEFIT (PROVISION)                              3,133           801          (330)            --           3,604
                                                          -------     ---------       -------        -------       ---------

NET (LOSS) INCOME                                         $(3,823)    $  (8,044)      $ 1,022        $ 7,022       $  (3,823)
                                                          =======     =========       =======        =======       =========
</TABLE>



                                       10
<PAGE>   11

                       SUPPLEMENTAL GUARANTOR INFORMATION
                              ALLIED HOLDINGS, INC
          SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                      NINE MONTHS ENDED SEPTEMBER 30, 2000
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                                      ALLIED    GUARANTOR    NON-GUARANTOR
                                                                     HOLDINGS  SUBSIDIARIES  SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
                                                                     --------  ------------  ------------- ------------ ------------
<S>                                                                  <C>       <C>           <C>           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income (loss)                                                   $ 1,244    $    (652)   $ 2,731      $(2,079)     $   1,244
                                                                       -------    ---------    -------      -------      ---------
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
         Depreciation and amortization                                     321       45,085        280           --         45,686
         Loss on sale of property and equipment                             --           97         --           --             97
         Deferred income taxes                                             567          119       (582)          --            104
         Compensation expense related to stock options and grants          452           --         --           --            452
         Equity in earnings (loss) of joint ventures                        --       (4,359)       158           --         (4,201)
         Equity in net income of subsidiaries                           (2,079)          --         --        2,079             --
         Amortization of Teamsters Union signing bonus                      --        1,850         --           --          1,850
         Change in operating assets and liabilities:
               Receivables, net of allowance for doubtful accounts         (80)      (2,144)      (142)          --         (2,366)
               Inventories                                                  --           (7)        --           --             (7)
               Prepayments and other current assets                       (127)      (1,623)        33           --         (1,717)
               Intercompany receivables and payables                   (12,049)      12,695       (646)          --             --
               Trade accounts payable                                      124       (6,416)      (295)          --         (6,587)
               Accrued liabilities                                         843      (15,233)     5,757           --         (8,633)
                                                                       -------    ---------    -------      -------      ---------
                 Total adjustments                                     (12,028)      30,064      4,563        2,079         24,678
                                                                       -------    ---------    -------      -------      ---------
                 Net cash (used in) provided by operating activities   (10,784)      29,412      7,294           --         25,922
                                                                       -------    ---------    -------      -------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property and equipment                                    (141)     (14,955)      (876)          --        (15,972)
   Intercompany sale of property and equipment                          (8,716)       8,716         --           --             --
   Proceeds from sale of property and equipment                             --          799         --           --            799
   Purchase of business, net of cash acquired                               --       (8,185)        --           --         (8,185)
   Return of capital                                                    11,999      (11,999)        --           --             --
   Intercompany dividend received (paid)                                 4,349       (4,349)        --           --             --
   Increase in short-term investments                                       --           --    (14,044)          --        (14,044)
   Increase in cash surrender value of life insurance                       --         (128)        --           --           (128)
                                                                       -------    ---------    -------      -------      ---------
                 Net cash provided by (used) in investing activities     7,491      (30,101)   (14,920)          --        (37,530)
                                                                       -------    ---------    -------      -------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from issuance of long-term debt, net                           690           81         --           --            771
   Proceeds from issuance of common stock                                  626           --         --           --            626
   Repurchase of common stock                                             (282)          --         --           --           (282)
   Other, net                                                              787          313        794           --          1,894
                                                                       -------    ---------    -------      -------      ---------
                 Net cash provided by financing activities               1,821          394        794           --          3,009
                                                                       -------    ---------    -------      -------      ---------

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS                --          315     (1,096)          --           (781)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                    (1,472)          20     (7,928)          --         (9,380)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                           1,852        3,179      8,953           --         13,984
                                                                       -------    ---------    -------      -------      ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $   380    $   3,199    $ 1,025      $    --      $   4,604
                                                                       =======    =========    =======      =======      =========
</TABLE>

                                       11
<PAGE>   12

                       SUPPLEMENTAL GUARANTOR INFORMATION
                              ALLIED HOLDINGS, INC
          SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                      NINE MONTHS ENDED SEPTEMBER 30, 1999
                                  IN THOUSANDS

<TABLE>
<CAPTION>
                                                                     ALLIED    GUARANTOR    NON-GUARANTOR
                                                                    HOLDINGS  SUBSIDIARIES  SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
                                                                    --------  ------------  ------------- ------------ ------------
<S>                                                                 <C>       <C>           <C>           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net (loss) income                                                 $(3,696)    $  (8,415)    $ 1,102       $ 7,313     $  (3,696)
                                                                     -------     ---------     -------       -------     ---------
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
       Depreciation and amortization                                     192        42,808         242            --        43,242
       Loss on sale of property and equipment                             --           781          --            --           781
       Deferred income taxes                                           1,787           628          --            --         2,415
       Compensation expense related to stock options and grants          441            --          --            --           441
       Equity in loss of joint ventures                                   --        (1,307)       (309)           --        (1,616)
       Equity in net loss of subsidiaries                              7,313            --          --        (7,313)           --
       Payment of Teamsters Union signing bonus                           --        (9,654)         --            --        (9,654)
       Change in operating assets and liabilities:
         Receivables, net of allowance for doubtful accounts               2       (16,541)       (495)           --       (17,034)
         Inventories                                                      --          (933)         --            --          (933)
         Prepayments and other current assets                           (127)       (2,980)        452            --        (2,655)
         Trade accounts payable                                         (288)       (7,342)       (459)           --        (8,089)
         Intercompany payables                                       (65,424)       65,471         (47)           --            --
         Accrued liabilities                                          (4,454)      (18,963)      8,178            --       (15,239)
                                                                     -------     ---------     -------       -------     ---------
               Total adjustments                                     (60,558)       51,968       7,562        (7,313)       (8,341)
                                                                     -------     ---------     -------       -------     ---------
               Net cash (used in) provided by operating activities   (64,254)       43,553       8,664            --       (12,037)
                                                                     -------     ---------     -------       -------     ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                                     --       (37,062)     (1,228)           --       (38,290)
  Proceeds from sale of property and equipment                            --         1,108          --            --         1,108
  Purchase of business, net of cash acquired                              --        (1,879)         --            --        (1,879)
  Return of capital                                                       --           (80)         --            --           (80)
  Intercompany dividend (received) paid                                4,638        (4,638)         --            --            --
  Decrease in short-term investments                                      --            --       7,425            --         7,425
  Increase in cash surrender value of life insurance                      --           (47)         --            --           (47)
                                                                     -------     ---------     -------       -------     ---------
               Net cash provided by (used in) investing activities     4,638       (42,598)      6,197            --       (31,763)
                                                                     -------     ---------     -------       -------     ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of long-term debt, net                       57,077        (1,147)         --            --        55,930
  Proceeds from issuance of common stock                                 211            --          --            --           211
  Other, net                                                           1,042        (1,754)      1,553            --           841
                                                                     -------     ---------     -------       -------     ---------
               Net cash provided by (used in) financing activities    58,330        (2,901)      1,553            --        56,982
                                                                     -------     ---------     -------       -------     ---------

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS              --           159         (52)           --           107

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                  (1,286)       (1,787)     16,362            --        13,289

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                           895         1,849      19,233            --        21,977
                                                                     -------     ---------     -------       -------     ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                           $  (391)    $      62     $35,595       $    --     $  35,266
                                                                     =======     =========     =======       =======     =========
</TABLE>


                                       12
<PAGE>   13

Note 3.  Comprehensive Income

         Comprehensive income was a loss of $5.6 million for the third quarter
         2000 versus a loss of $3.6 million for the third quarter 1999, and a
         loss of $1.7 million for the first nine months of 2000 versus a loss of
         $1.6 million for the first nine months of 1999. The difference between
         comprehensive income and net income is the change in the foreign
         currency translation adjustment, net of income taxes.

Note 4.  Accounting for Derivative Instruments and Hedging Activities

         In June 1998, the Financial Accounting Standards Board issued SFAS No.
         133, "Accounting for Derivative Instruments and Hedging Activities."
         The Statement establishes accounting and reporting standards requiring
         that every derivative instrument (including certain derivative
         instruments embedded in other contracts) be recorded in the balance
         sheet as either an asset or liability measured at its fair value. The
         Statement requires that changes in the derivative's fair value be
         recognized currently in earnings unless specific hedge accounting
         criteria are met. Special accounting for qualifying hedges allows a
         derivative's gains and losses to offset related results on the hedged
         item in the income statement, and requires that a company must formally
         document, designate, and assess the effectiveness of transactions that
         receive hedge accounting.

         During the second quarter of 1999, the Financial Accounting Standards
         Board issued SFAS No. 137, which deferred the effective date of SFAS
         No. 133. The Statement defers the effective date for all quarters of
         all fiscal years beginning after June 15, 2000. The Company will adopt
         this statement in the first quarter of 2001. The Company is currently
         in the process of analyzing certain transactions in order to meet the
         requirements of this statement by January 1, 2001.

Note 5.  Segment Reporting

         The Company operates in one reportable industry segment: transporting
         automobiles and light trucks from manufacturing plants, ports,
         auctions, and railway distribution points to automotive dealerships.
         Geographic financial information is as follows (in thousands):

<TABLE>
<CAPTION>
                      For the three months ended    For the nine months ended
                            September 30                  September 30
                      --------------------------    -------------------------
                         2000           1999           2000          1999
                      ---------    -------------    ----------   ------------
<S>                   <C>          <C>               <C>         <C>
Revenues:
United States         $195,219       $202,684        $672,397      $658,029
Canada                  41,128         37,374         142,731       130,262
                      --------       --------        --------      --------
                      $236,347       $240,058        $815,128      $788,291
                      ========       ========        ========      ========
</TABLE>

Revenues are attributed to the respective countries based on the location of the
origination terminal.


                                       13
<PAGE>   14

Note 6.  Equity in Earnings of Joint Ventures

         The Company has joint ventures in the United Kingdom and Brazil. Equity
         in earnings for these joint ventures is recorded net of income taxes in
         the consolidated statements of operations by the Company. Income taxes
         related to the joint ventures were $2,000 and $1.2 million for the
         three and nine months ended September 30, 2000 and $661,000 and
         $673,000 for the three and nine months ended September 30, 1999.
         Included in the second quarter of 2000 results are $1.5 million in fees
         related to management services declared by the joint venture. A
         corresponding receivable is included in the balance sheet of the
         Company.

Note 7.  Stock Repurchase Plan

         The Company's Board of Directors has authorized management to take the
         necessary steps to repurchase up to 500,000 shares of the Company's
         outstanding common stock through fiscal year 2000 in open market
         transactions. The timing of these purchases and the number of shares
         purchased will be dictated by market conditions and other relevant
         factors. Through September 30, 2000, the Company has repurchased 61,652
         shares.

Note 8.  Litigation

         The Company is routinely a party to litigation incidental to its
         business, primarily involving claims for personal injury and property
         damage incurred in the transportation of vehicles. The Company does not
         believe that any of such pending litigation if adversely determined
         would have a material adverse effect on the Company.

         The Company is defending two pieces of related litigation in the
         Supreme Court of Erie County, New York: Gateway Development &
         Manufacturing, Inc. v. Commercial Carriers, Inc., et al., Index No.
         1997/8920 (the "Gateway Case"), and Commercial Carriers, Inc., v.
         Gateway Development & Manufacturing, Inc., et al. (the "CCI Case"),
         Index No. I2000/8184. The claims at issue in both the Gateway Case and
         the CCI Case center around the contention that the Company breached
         legal duties with respect to a failed business transaction involving
         Gateway Development & Manufacturing, Inc., Ryder Truck Rental, Inc.,
         and Ryder System, Inc. In the Gateway Case, the Company has sought and
         received summary judgment in its favor on the sole claim (for tortious
         interference with contract) asserted against it by Gateway Development
         & Manufacturing, Inc., but anticipates the filing and service of
         cross-claims that the court has permitted to be asserted against the
         Company by the other defendants in that action. In the CCI Case, the
         Company has accepted or expects to accept service of a separate
         complaint asserting claims against the Company that are virtually
         identical to the cross-claims that the Company expects to be asserted
         against it by the other defendants in the Gateway Case. It is
         anticipated that the claims asserted in both the Gateway Case and the
         CCI Case will be resolved in a unified proceeding. With respect to the
         entirety of this litigation, the Company intends to continue its
         vigorous defense against the claims asserted it, as management believes
         all of those claims are without merit. While the


                                       14
<PAGE>   15

         ultimate results of this litigation cannot be predicted, management
         does not expect that the resolution of these proceedings will have a
         material adverse effect on the Company's consolidated financial
         position or results of operations.

         In June 2000, Commercial Carriers, Inc. (CCI), which is a subsidiary of
         Allied Automotive Group, Inc., a subsidiary of Allied Holdings, Inc.,
         filed suit against National Union Fire Insurance Company of Pittsburgh,
         PA (National Union). National Union is to provide insurance coverage of
         approximately $20 million regarding a $35 million judgment against CCI
         and had fully reserved its rights of insurance coverage. CCI filed a
         lawsuit seeking a declaratory judgment that National Union had no basis
         for reserving its rights.

         In July 2000, National Union unconditionally withdrew its previously
         issued reservation of its rights and acknowledged coverage, and CCI
         dismissed, without prejudice, the lawsuit it previously filed against
         National Union. As a result, CCI has insurance coverage for the entire
         amount of the judgment.

Note 9.  Reclassifications

         Certain amounts in the prior year financial statements have been
         reclassified to conform to the current year presentation.


                                       15
<PAGE>   16

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

         Revenues were $236.3 million for the third quarter of 2000 versus
         revenues of $240.1 million for the third quarter of 1999, a decrease of
         1.6%. For the nine-month period ended September 30, 2000, revenues were
         $815.1 million, versus revenues of $788.3 million for the nine-month
         period ended September 30, 1999, an increase of 3.4%. During 2000, the
         Company generated higher revenue per vehicle delivered, which is due to
         revenue enhancements and other factors, including the elimination of
         some non-profitable business. During the third quarter, the additional
         revenue generated per vehicle delivered was offset by a decrease in the
         number of vehicles delivered. The decrease in volume was primarily a
         result of decreased new vehicle production partly due to the Firestone
         tire recall, which lowered production at three Ford Plants served by
         the Company.

         The Company experienced a net loss of $4.6 million for the third
         quarter of 2000 versus a net loss of $3.8 million for the third quarter
         of 1999. Basic and diluted loss per share for the third quarter of 2000
         was $0.58 versus basic and diluted loss per share of $0.49 for the
         third quarter of 1999. For the nine-month period ended September 30,
         2000, net income was $1.2 million, versus a net loss of $3.7 million
         for the nine-month period ended September 30, 1999. Basic and diluted
         earnings per share for the nine-month period ended September 30, 2000
         were $0.16 versus basic and diluted loss per share of $0.47 for the
         nine-month period ended September 30, 1999.

         Earnings improved for the first nine months of 2000 versus the first
         nine months of 1999 due to continued cost control measures implemented
         in the fourth quarter of 1999, combined with an increase in the revenue
         generated per vehicle delivered. The rate structure was modified in the
         second half of 1999 in response to the increase in light truck
         deliveries, which adversely impacted load averages and operating
         results. The result was an increase in the revenue generated per
         vehicle delivered. During 2000, the Company has experienced higher fuel
         costs. The Company began implementing fuel surcharges in the first
         quarter of 2000; in addition, the Company hedges a portion of its
         expected fuel consumption. The Company estimates that higher fuel
         costs, net of surcharges and hedging gains, reduced earnings in the
         first quarter of 2000 by approximately $1.6 million, or $0.20 per
         share. The fuel surcharges were fully implemented by the second
         quarter, and accordingly, the higher fuel costs were offset by
         surcharges and hedging gains in the second quarter and for most of the
         third quarter. However, fuel costs again increased significantly late
         in the third quarter of 2000, and the Company estimates that higher
         fuel costs, net of surcharges and hedging gains, reduced earnings in
         the third quarter by approximately $0.6 million, or $0.07 per share.

         During the third quarter, Ford suspended production at three
         manufacturing plants due to the Firestone tire recall. The Company
         handled vehicle deliveries at all three plants. The Company estimates
         that the loss of business due to the Firestone tire recall, and to a
         lesser


                                       16
<PAGE>   17

         extent, extended plant shutdowns by other manufacturers, reduced net
         earnings by approximately $2.4 million, or $0.30 per share.

         The following is a discussion of the changes in the Company's major
         expense categories:

         Salaries, wages and fringe benefits increased slightly from 55.9% of
         revenues for the third quarter of 1999 to 56.2% of revenues for the
         third quarter of 2000, and decreased from 54.4% of revenues for the
         first nine months of 1999 to 54.2% of revenues for the first nine
         months of 2000. The change was due primarily to annual salary and
         benefit increases, offset by continued productivity and efficiency
         improvements. During the third quarter of 2000, the slight increase was
         also due to the impact of the Firestone tire recall.

         Operating supplies and expenses increased from 17.2% of revenues for
         the third quarter of 1999 to 17.3% of revenues for the third quarter of
         2000, and also increased from 17.2% of revenues for the first nine
         months of 1999 to 17.3% of revenues for the first nine months of 2000.
         The increase is due primarily to higher fuel prices that more than
         offset the decrease in Year 2000 compliance expenses and efficiency
         improvements gained in 2000.

         Insurance and claims expense decreased from 4.9% of revenues for the
         third quarter of 1999 to 4.8% of revenues for the third quarter of
         2000, and decreased from 4.8% of revenues for the first nine months of
         1999 to 4.5% of revenues for the first nine months of 2000. The
         decrease is due to quality initiatives the Company put in place to
         reduce the frequency and dollar amount of damage claims.

         Equity in earnings of joint ventures was 0.6% of revenues for both the
         third quarter of 1999 and 2000 and increased from 0.2% of revenues for
         the first nine months of 1999 to 0.5% of revenues for the first nine
         months of 2000. The increase was due to increased earnings from the
         Company's joint ventures in the United Kingdom, which began operations
         in May 1999, and a reduction in the loss from the Company's Brazilian
         venture.

         Interest expense as a percentage of revenues increased from 3.4% of
         revenues for the third quarter of 1999 to 3.5% of revenues for the
         third quarter of 2000, and increased from 3.0% of revenues for the
         first nine months of 1999 to 3.1% for the first nine months of 2000.
         The increase was due primarily to higher interest rates in 2000 versus
         1999.

         Interest income, as a percentage of revenues, increased from 0.3% in
         the third quarter of 1999 to 0.7% in the third quarter of 2000, and
         increased from 0.2% for the first nine months of 1999 to 0.5% for the
         first nine months of 2000. The increase was due to higher earnings on
         marketable securities held by the Company's captive insurance company.


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<PAGE>   18

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES


         Net cash provided by operating activities totaled $25.9 million for the
         nine-month period ended September 30, 2000 versus net cash used by
         operating activities of $12.0 million for the nine-month period ended
         September 30, 1999. The significant increase in cash provided by
         operations was due primarily to an increase in earnings during the
         first nine months of 2000 versus 1999, combined with a favorable change
         in operating assets and liabilities as the Company implemented measures
         to improve asset utilization.

         Net cash used in investing activities totaled $37.5 million for the
         nine-month period ended September 30, 2000 versus $31.8 million for the
         nine-month period ended September 30, 1999. The increase was due
         primarily to the purchase of CT Group, a logistics service group, in
         March 2000 for $8.2 million. A decrease in capital expenditures was
         offset by an increase in short-term investments. The investment
         portfolio mix of the Company's captive insurance company changed during
         the first nine months of 2000 as short-term investments increased by
         $14.0 million. The change was the result of the captive insurance
         company's investment managers investing cash on hand. Capital
         expenditures were $16.0 million in the first nine months of 2000 versus
         $38.3 million in the first nine months of 1999. The reduced level of
         capital spending was the result of efforts by the Company to limit
         capital expenditures in 2000 as fleet utilization improved and due to
         the timing of capital expenditures. The Company expects capital
         spending to be higher in the last half of 2000 versus the first half
         while spending in 1999 was higher in the first half of the year.

         Net cash provided by financing activities totaled $3.0 million for the
         nine-month period ended September 30, 2000 versus $57.0 million for the
         nine-month period ended September 30, 1999. The decrease was due
         primarily to the increase in cash flows from operations.

DISCLOSURES ABOUT MARKET RISKS

         The market risk inherent in the Company's market risk sensitive
         instruments and positions is the potential loss arising from adverse
         changes in short-term investment prices, interest rates, fuel prices,
         and foreign currency exchange rates.

         SHORT-TERM INVESTMENTS - The Company does not use derivative financial
         instruments in its investment portfolio. The Company places its
         investments in instruments that meet high credit quality standards, as
         specified in the Company's investment policy guidelines. The policy
         also limits the amount of credit exposure to any one issue, issuer, and
         type of instrument. Short-term investments at September 30, 2000, which
         are recorded at a fair value of $58.4 million, have exposure to price
         risk. This risk is estimated as the potential loss in fair value
         resulting from a hypothetical 10% adverse change in quoted prices and
         amounts to $5.8 million.


                                       18
<PAGE>   19

         INTEREST RATES - The Company primarily issues long-term debt
         obligations to support general corporate purposes including capital
         expenditures and working capital needs. The majority of the Company's
         long-term debt obligations bear a fixed rate of interest. A
         one-percentage point increase in interest rates affecting the Company's
         floating rate long-term debt would reduce pre-tax income by $1.4
         million over the next fiscal year. A one-percentage point change in
         interest rates would not have a material effect on the fair value of
         the Company's fixed rate long-term debt.

         FUEL PRICES - The Company is dependent on diesel fuel to operate its
         fleet of rigs. Diesel fuel prices are subject to fluctuations due to
         unpredictable factors such as weather, government policies, changes in
         global demand, and global production. To reduce price risk caused by
         market fluctuations, the Company generally follows a policy of hedging
         a portion of its anticipated diesel fuel consumption. The instruments
         used are principally readily marketable exchange traded futures
         contracts that are designated as hedges. The changes in market value of
         such contracts have a high correlation to the price changes of diesel
         fuel. Gains and losses resulting from fuel hedging transactions are
         recognized when the underlying fuel being hedged is used. A 10%
         increase in diesel fuel prices would reduce pre-tax income by $5.5
         million over the next fiscal year.

         FOREIGN CURRENCY EXCHANGE RATES - Although the majority of the
         Company's operations are in the United States, the Company does have
         foreign subsidiaries (primarily Canada). The net investments in foreign
         subsidiaries translated into dollars using exchange rates at September
         30, 2000, are $81.5 million. The potential loss in fair value impacting
         other comprehensive income resulting from a hypothetical 10% change in
         quoted foreign currency exchange rates amounts to $8.2 million. The
         Company does not use derivative financial instruments to hedge its
         exposure to changes in foreign currency exchange rates.

YEAR 2000

         Year 2000 ("Y2K" or "Year 2000") issues were addressed by the Company.
         The Company, like most other major companies, addressed a universal
         problem commonly referred to as "Year 2000 Compliance," which relates
         to the ability of computer programs and systems to properly recognize
         and process date sensitive information before and after January 1,
         2000.

         The Company has analyzed internal information technology ("IT") systems
         ("IT systems") to identify any computer programs that are not Year 2000
         compliant and implement changes required to make such systems Year 2000
         compliant. The Company critical IT systems functioned without
         substantial Year 2000 Compliance problems.

         As of December 31, 1999, the Company's total incremental costs
         (historical plus estimated future costs) of addressing Y2K issues were
         estimated to be $5.0 million, of which approximately $4.1 million was
         incurred in 1999 and $900,000 was incurred in 1998. The Company
         estimates that approximately 30% of the costs incurred in 1999 were
         internal costs, including compensation and benefits of employees
         assigned primarily to Y2K procedures. Internal costs addressing Y2K
         issues during 1998 were not material.


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<PAGE>   20

         These costs were funded through operating cash flow. The Company did
         not incur material Y2K related costs in the first nine months of 2000.

         SEASONALITY AND INFLATION

         The Company's revenues are seasonal, with the second and fourth
         quarters generally experiencing higher revenues than the first and
         third quarters. The volume of vehicles shipped during the second and
         fourth quarters is generally higher due to the introduction of new
         models which are shipped to dealers during those periods and the higher
         spring and early summer sales of automobiles and light trucks. During
         the first and third quarters, vehicle shipments typically decline due
         to lower sales volume during those periods and scheduled plant shut
         downs. Inflation has not significantly affected the Company's results
         of operations.

         CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

         Statements in this quarterly report on Form 10-Q contains
         forward-looking statements, including statements regarding, among other
         items, (i) the Company's plans, intentions or expectations, (ii)
         general industry trends, competitive conditions and customer
         preferences, (iii) the Company's management information systems, and
         its ability to resolve any Year 2000 issues related thereto (iv) the
         Company's efforts to reduce costs, (v) the adequacy of the Company's
         sources of cash to finance its current and future operations and (vi)
         resolution of litigation without material adverse effect on the
         Company. This notice is intended to take advantage of the "safe harbor"
         provided by the Private Securities Litigation Reform Act of 1995 with
         respect to such forward-looking statements. These forward-looking
         statements involve a number of risks and uncertainties. Among others,
         factors that could cause actual results to differ materially are the
         following: economic recessions or downturns in new vehicle production
         or sales; the highly competitive nature of the automotive distribution
         industry; dependence on the automotive industry; loss or reduction of
         revenues generated by the Company's major customers; the variability of
         quarterly results and seasonality of the automotive distribution
         industry; labor disputes involving the Company or its significant
         customers; the dependence on key personnel who have been hired or
         retained by the Company; the availability of strategic acquisitions or
         joint venture partners; changes in regulatory requirements which are
         applicable to the Company's business; changes in vehicle sizes and
         weights which may adversely impact vehicle deliveries per load; the
         ability to increase the rates charged to customers; risks associated
         with doing business in foreign countries; problems related to
         information technology systems and computations that must be made by
         the Company or its customers and vendors in 1999, 2000 or beyond; and
         the risk factors listed herein from time to time in the Company's
         Securities and Exchange Commission reports, including but not limited
         to, its Annual Reports on Form 10-K or 10-Q.


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<PAGE>   21

PART II.


ITEM 1.    LEGAL PROCEEDINGS.

           Refer to Note 7 on Page 8 of this Report on Form 10-Q for information
           on legal proceedings.

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.

(a)   Exhibits:  27 -  Financial Data Schedule (for SEC use only)


(b)   Reports on Form 8-K:  None.


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<PAGE>   22


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                 Allied Holdings, Inc.



November 14, 2000                 /s/A. Mitchell Poole, Jr.
-----------------                ----------------------------------------
    (Date)                       A. Mitchell Poole, Jr.
                                 on behalf of Registrant as
                                 Vice Chairman and
                                 Chief Executive Officer




November 14, 2000                /s/Daniel H. Popky
-----------------                ----------------------------------------
    (Date)                       Daniel H. Popky
                                 on behalf of Registrant as
                                 Senior Vice President, Finance
                                 and Chief Financial Officer


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