General Motors sues Fiat Chrysler »GoGetNews News

General Motors demands that the FCA compensate him for billions of losses, accusing the automaker of bribing unions.

GM sued Fiat Chrysler Automobiles and former executives. Judging by their allegations, the FCA had advantages (more favorable terms of collective agreements) compared to other automakers, as from 2009 to 2015 it bribed the heads of the United Automobile Workers (UAW) automobile workers union.

The appeal was based on the results of the investigation, which the prosecutor's office of the Eastern District of Michigan conducted a couple of years ago. The case concerned three FCA executives and four former UAW leaders. Moreover, then they pleaded guilty in court. This did not stop GM from filing a new lawsuit. It indicated that UAA affiliates at FCA paid lower fees than General Motors, and they could also hire more temporary workers. Because of this, GM allegedly lost billions of dollars, which it now demands to compensate.

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GM emphasizes that in the center of the bribery scheme was the former chief executive officer of FCA Sergio Marchionne, who died in the summer of 2018. Fiat Chrysler Automobiles disagrees with the allegations and claims that with the help of this lawsuit, the concern is trying to divert attention from the recently completed strike of workers (it cost General Motors almost $ 3 billion).

It should be noted that the idea to file a lawsuit “surfaced” exactly when Fiat Chrysler announced preparations for a merger with Peugeot Citroen. It may have been suggested that the PSA would not want to get in touch with a troubled potential business partner. However, the French, apparently, were not timid and were not in a hurry to refuse the deal. The two companies intend to complete the merger in the next six weeks.

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