Canadian Manufacturing

General Motors’ lawsuit is without merit, Fiat Chrysler

GM has filed a federal racketeering lawsuit against FCA and alleges it has an unfair business advantage after paying bribes

November 21, 2019  by CMStaff

Fiat Chrysler Automobiles says it will defend itself against a lawsuit filed by General Motors.

GM has filed a federal racketeering lawsuit against FCA (FCA US LLC and Fiat Chrysler Automobiles NV) and former FCA executives who have pled guilty in an ongoing federal corruption probe.

GM stated that FCA has an unfair business advantage after paying millions of dollars in bribes to corrupt the bargaining process with the United Auto Workers union.

“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labour agreements over time,” noted a GM press statement.

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GM’s lawsuit, filed under federal racketeering laws, alleges FCA corrupted the implementation of the 2009 collective bargaining agreement, as well as “corrupted the negotiation, implementation, and administration of the 2011 and 2015 agreements.”

FCA said in a statement that GM’s claims are “nothing more than a meritless attempt to divert attention from that company’s own challenges.”

FCA notes that GM’s “ploy comes at a time when FCA is proving itself to be an ever more formidable competitor” and is nothing more than a “meritless attempt to divert attention from that company’s own challenges.”

 


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