<PAGE>
                                                                   EXHIBIT 10.1


                               FIRST AMENDMENT TO
                              EMPLOYMENT AGREEMENT

         THIS FIRST AMENDMENT to Employment Agreement (the "Amendment") is made
and entered into as of the 22nd day of December, 2001, by and between Hugh E.
Sawyer ("Employee") and Allied Holdings, Inc. ("Employer").

                                  WITNESSETH:

         WHEREAS, Employer and Employee entered into that certain Employment
Agreement dated effective as of June 18, 2001 (the "Employment Agreement"); and

         WHEREAS, the parties desire to amend the Employment Agreement as set
forth herein;

         NOW, THEREFORE, for and in consideration of the covenants and
conditions set forth herein, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, Employer and Employee
hereby mutually agree as follows:

         1.       The last sentence of Section 5(a) shall be deleted in its
entirety, and the following shall be substituted in its place:

                  "Such annual cash bonuses will be payable on such date or
                  dates as is determined by the Compensation Committee of the
                  Board of Directors, but in no event later than thirty (30)
                  days after completion of the independent certified audit for
                  the applicable year (each, an "Annual Bonus"); and

         2.       The second to the last sentence of Section 5(b) shall be
deleted in its entirety, and the following shall be substituted in its place:

                  "Such Annual Bonus shall be payable on a date or dates to be
determined by the Compensation Committee of the Board of Directors."

         3.       All terms which are capitalized herein, but which are not
defined herein, shall have the meanings ascribed to them in the Employment
Agreement.

         4.       All provisions of the Employment Agreement which have not
been amended by this Amendment shall remain in full force and effect.
Notwithstanding the foregoing, to the extent there is any inconsistency between
the provisions of the Employment Agreement and the provisions of this
Amendment, the provisions of this Amendment shall control.

         5.       Each of the parties hereto will, from time to time, and at
all times hereafter, upon every reasonable request to do so by any other party,
make, do, execute


<PAGE>


and deliver, or cause to be made done, executed and delivered, all such further
acts, deeds, assurances and things as may be reasonably required or necessary
in order to further implement and carry out the terms and purpose of this
Amendment.

         6.       This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute the same agreement, document, or instrument. Any signature page of
any such counterpart, or any electronic facsimile thereof, may be attached or
appended to any other counterpart to complete a fully executed counterpart of
such agreement, document or instrument, and any telecopy or other facsimile
transmission of any signature shall be deemed an original and shall bind such
party.

         IN WITNESS WHEREOF, each of the parties hereto has caused this
Amendment to be duly executed on its behalf, all as of the day and year first
written above.


                                    "Employer"


                                    ALLIED HOLDINGS, INC.



                                    By:  /s/ Robert J. Rutland
                                       ----------------------------------------
                                       Robert J. Rutland, Chairman


                                    "Employee"


                                    /s/ Hugh E. Sawyer
                                    -------------------------------------------
                                    HUGH E. SAWYER