GM sues Fiat Chrysler, alleging union bribes cost it billions

[Bili]

DETROIT (Reuters) - General Motors Co on Wednesday filed a racketeering lawsuit against Fiat Chrysler Automobiles NV, alleging that its rival bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.

GM also alleged that Fiat Chrysler’s former chief executive, the late Sergio Marchionne, was central in the scheme.

The No. 1 U.S. automaker said it will seek “substantial damages” from FCA that it said would be reinvested in the United States to create jobs, but did not specify an exact amount.

The lawsuit comes at a delicate time for FCA, which is working on a planned merger with French automaker PSA and is negotiating a four-year labor contract with the UAW.


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[Bili]

Fiat Chrysler says Peugeot talks progressing despite GM lawsuit

FRANKFURT, Nov 21 (Reuters) - Fiat Chrysler on Thursday said its talks with Peugeot to create the fourth-largest carmaker are going well, despite a racketeering lawsuit filed by General Motors late on Wednesday, seeking “substantial damages.”

GM filed a lawsuit against Fiat Chrysler alleging that its rival bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.

“Talks are progressing smoothly,” a FiatChrysler spokesman said about ongoing talks with Pegueot on Thursday.

In a letter to employees, Fiat Chrysler Chief Executive Mike Manley said: “We are astonished by this filing, both its content and its timing. We can only assume it was intended to disrupt our proposed merger with PSA.”

More at: Fiat Chrysler says Peugeot talks progressing despite GM lawsuit

 

[AlexB]

This GM suit is laughable, and tries to attach the hostile takeover plan where Mary would have been fired by John with the Company's conduct involving the UAW.

 

[AlexB]

This an important thread to put this in context.

FCA "Bold and creative" future

Sounds like they are trying to sell it https://www.autonews.com/automakers-suppliers/fiat-chrysler-ready-bold-action-build-solid-future-elkann-says

moparinsiders.com

 

[AlexB]

One funny thing about this lawsuit is how GM tries to go back to 2009 to an UAW contract negotiated by the Federal Government whom want Chrysler to have more flexibility in its contract over GM. GM is basically pointing to the U.S. Government of being blind & stupid which is quite foul behavior given that same Government Task Force staff was keeping GM in business.
GM is not grateful for being saved.

 

[redriderbob]

MoparInsiders obtained an e-mail addressed to the employees of FCA addressing the issue...

General Motors Files Racketeering Lawsuit Against FCA:

General Motors (GM) filed a racketeering lawsuit against Fiat Chrysler Automobiles (FCA) yesterday, alleging that FCA bribed United Auto Workers (UAW) union officials from 2009 to 2015, which caused GM billions during the bargaining process with the union. GM is also claiming that FCA’s former...

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