General Motors and Fiat Chrysler to Do "Battle" in Court

Nowadays, racketeering is not just solely associated with the Mafia and other organized crimes in the streets. Nowadays, becoming a victim of a "racket" can also happen with automotive giants.

Take the case of General Motors (GM). The company has recently filed a lawsuit against Fiat-Chrysler Automobiles (FCA) accusing them of bribing union officials to gain better contract terms over the union.

According to GM, FCA has been bribing the United Auto Workers (UAW) for more than ten years. UAW is considered one of the biggest and most diverse unions in North America, has more than 400,000 active members in the United States, Canada, and Puerto Rico.

According to the lawsuit, GM has accused former Fiat Chrysler CEO Sergio Marchionne of permitting bribes to union officials to establish unintended work practices and wage costs.

“Marchionne was a central figure in the conceiving, executing and sponsoring of the fraudulent activity,” according to GM General Counsel Craig Glidden said.

GM reported that the FCA has extorted the bargaining process in 2009, 2011, and 2015 in order for the Italian car manufacturer to strengthen a "labor cost advantage" over GM.

Currently, Fiat Chrysler has an $8 hourly labor cost advantage over General Motors.

“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 in a statement.

"FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational advantages, causing harm to GM," its lawyers said in a statement.

Meanwhile, Fiat called the move by GM as 'meritless', and even went so far as to accuse GM of filing the lawsuit as a means to abandon Fiat's planned merger with Peugeot car maker, PSA Groupe.

"We are astonished by this filing, both its content and its timing," FCA said in a statement. "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."

Also Read: GM Powertrain Thailand Celebrates 500,000th Engine Production Milestone
GM Announces New Leadership for Southeast Asia
GM Korea Could Be on Its Death Bed

Read All

Featured Articles

Recommended Articles For You

Read All

Featured Cars

  • Upcoming

Car Articles From Zigwheels

  • News
  • Article Feature
  • Advisory Stories
  • Road Test
  • Zigwheels PH weekly wrap-up
    Zigwheels PH weekly wrap-up
    Paulo Papa . Jan 24, 2025
  • 2025 Nissan Mobility Tour heads to Cebu
    2025 Nissan Mobility Tour heads to Cebu
    Cesar Miguel . Jan 24, 2025
  • Astara PH expands JMC Grand Avenue 4x4 AT’s color selections
    Astara PH expands JMC Grand Avenue 4x4 AT’s color selections
    Ruben Manahan IV . Jan 24, 2025
  • Hyundai Mobility Experience 2025 to kick off at Alabang
    Hyundai Mobility Experience 2025 to kick off at Alabang
    Cesar Miguel . Jan 24, 2025
  • Volvo PH is showcasing the all-new EX30 at BGC
    Volvo PH is showcasing the all-new EX30 at BGC
    Cesar Miguel . Jan 24, 2025
  • Here are the EVs we want to see in PH this 2025
    Here are the EVs we want to see in PH this 2025
    Paulo Papa . Jan 24, 2025
  • GWM Tank 300 vs. rivals: list of off-road-capable alternatives
    GWM Tank 300 vs. rivals: list of off-road-capable alternatives
    Cesar Miguel . Jan 23, 2025
  • Premium SUV battle: Toyota Land Cruiser vs. Ford Bronco
    Premium SUV battle: Toyota Land Cruiser vs. Ford Bronco
    Cesar Miguel . Jan 23, 2025
  • Here are the Toyota Wigo's 6 spritely hues
    Here are the Toyota Wigo's 6 spritely hues
    Paulo Papa . Jan 23, 2025
  • Jetour Dashing PHEV: pros and cons
    Jetour Dashing PHEV: pros and cons
    Cesar Miguel . Jan 21, 2025
  • Here are some ideal destinations and safety tips for the upcoming Holy Week
    Here are some ideal destinations and safety tips for the upcoming Holy Week
    Paulo Papa . Mar 08, 2024
  • Here are some New Year’s resolutions for car owners
    Here are some New Year’s resolutions for car owners
    Paulo Papa . Jan 03, 2024
  • PH auto market: 2023 in retrospect
    PH auto market: 2023 in retrospect
    Paulo Papa . Dec 15, 2023
  • Here’s a holiday gift guide for car enthusiasts
    Here’s a holiday gift guide for car enthusiasts
    Hazel Nicole Carreon . Dec 15, 2023
  • Oil players cut pump prices anew
    Oil players cut pump prices anew
    Paulo Papa . Nov 14, 2023
  • Honda City RS CVT: a practical, stylish daily driver
    Honda City RS CVT: a practical, stylish daily driver
    Paulo Papa . Jan 24, 2025
  • All-new Chery Tiggo 2 Pro CVT: affordable, capable
    All-new Chery Tiggo 2 Pro CVT: affordable, capable
    Paulo Papa . Dec 26, 2024
  • Land Rover Defender 110 S D250: King of versatility
    Land Rover Defender 110 S D250: King of versatility
    Cesar Miguel . Dec 12, 2024
  • 2024 Ford Explorer Limited: reliable 6th man
    2024 Ford Explorer Limited: reliable 6th man
    Ruben Manahan IV . Dec 02, 2024
  • Honda Civic RS e:HEV: refined, athletic
    Honda Civic RS e:HEV: refined, athletic
    Cesar Miguel . Nov 28, 2024