• FCA: cause promoted by General Motors unfounded and disconcerting
  • General Motors sues FCA: accusation of corruption with the powerful Uaw union

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July 08, 2020 General Motors' lawsuit against FCA has been dismissed. Federal judge Paul Borman, in a 30-page sentence, explains that GM has not provided enough evidence to prove that it was directly damaged by the presumed conduct of FCA, accused of having manipulated the negotiations for the renewal of the employment contract with the United Auto Workers between 2009 and 2015. 

"GM has only accused indirect damages," says Borman, who in recent weeks had ordered the CEOs of the two companies, Mike Manley and Mary Barra, to meet face to face and resolve the dispute. A request against which GM has appealed obtaining a suspension of the order: however, it was only a temporary stop since, on appeal, the American justice denied GM the request to see the case assigned to another judge. 

"GM labor costs were not higher than they would have been in the absence of FCA bribes. FCA labor costs were lower than they should have been. In other words, FCA Uaw workers were the direct victims of bribes because they were paid less, "explains Borman.

Criticizing the ruling, the automaker driven by Barra suggests that it wants to continue its legal battle. "We disagree" with the justice decision and "we will pursue our legal process. There is enough evidence and our action shows in detail how the multi-million dollar bribes have caused direct damage to General Motors," says GM in a note.

FCA has always firmly denied the allegations of the other Detroit rival. According to legal experts, GM's lawsuit is unusual in that similar cases are often resolved with a plea bargain given the difficulty in showing that he was a direct victim of the alleged corruption.

In the GM case he pointed the finger at the former CEO, Sergio Marchionne, defined as a "central figure" in the scheme of bribes paid by FCA to the Uaw to weaken GM and pave the way for the wedding with Fiat Chrysler. FCA is accused of having committed itself to carrying out a corruption plan that has "undermined - it was written in the legal action - the integrity of the collective bargaining process and caused substantial damage to GM".