GM Sues FCA Over Corrupted Labor Talks
Nov. 21, 2019—General Motors is suing Fiat Chrysler Automobiles, alleging that it cost GM billions of dollars by corrupting labor talks over the past decade, reported The Detroit Free Press.
GM also alleged that former FCA boss Sergio Marchionne authorized bribes and conspired with the UAW to "effectively take over GM through a merger." GM's lawsuit, filed under federal racketeering laws, said 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 labor agreements over time."
"We are astonished by this filing, both its content and its timing," FCA said in a statement Wednesday afternoon. "We can only assume this was intended to disrupt our proposed merger with PSA as well as our negotiations with the UAW. We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it."