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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.
More at: GM sues Fiat Chrysler, alleging union bribes cost it billions
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.
More at: GM sues Fiat Chrysler, alleging union bribes cost it billions