General Motors Files RICO Lawsuit Against Fiat Chrysler Automobiles
General Motors Co. announced the filing of 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.
In a statement about the lawsuit, GM alleges that there was “a multi-year pattern of corruption that FCA used to undermine the integrity of the collective bargaining process and cause GM substantial damages.”
It further alleges that that there “exists clear admissions of wrongdoing made by former FCA executives revealed through the continuing criminal investigation by the U.S. Attorney’s Office in the Eastern District of Michigan.”
“This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” said Craig Glidden, GM executive vice-president and general counsel.
Fiat Chrysler Automobiles (FCA) issued a statement and said it will defend itself vigorously against the lawsuit filed.
“FCA believes General Motors’ claims are nothing more than a meritless attempt to divert attention from that company’s own challenges,” said the statement. “This astonishing ploy comes at a time when FCA is proving itself to be an ever more formidable competitor that continues to create significant value for all its stakeholders through the successful implementation of its long-term strategy. This includes the proposed merger with PSA, which itself completed the successful turnaround of the European businesses it acquired not long ago from General Motors.”
