General Motors Sues Fiat Chrysler over alleged union bribery

1. GM sues FCA

On Wednesday, General Motors sues Fiat Chrysler stating that the latter had bribed several United Auto Workers officials over a course of a decade. This was allegedly done by FCA to get some sort of advantage over GM. These two companies, after all, are the two of the largest car manufacturers in the world and are rivals.

Several hours after filing the lawsuit, the UAW president, Gary Jones resigned after being pressured by UAW itself.

Gary Jones, former UAW president

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This event which concerns one of the largest worker’s unions and the largest car manufacturers in the world is a very controversial event which many news sources are saying is unlike we’ve ever seen before. The said bruhaha stems from the long-running investigations by the U.S. Justice Department into some financial misconducts at Fiat Chrysler and at the UAW itself.

As of now, several UAW officers and three former FCA executives had already pleaded guilty in several cases revealing corruption.

In the GM lawsuit, it is alleged that the corruption went as far as to say that FCA’s chief executive at that time; Sergio Marchionne, was crucial in securing the union approval of cost concessions.

These certain advantages were denied to General Motors back in 2011 and 2015. Furthermore, the suit also claims that FCA executives had bribed union leaders to support FCA in the latter’s bid to pressure General Motors to form a merger back in 2015.

While still unproven, the charges mar Sergio Marchionne's Fiat-Chrysler legacy

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GM Seeks Damages

As FCA was able to acquire certain HUGE advantages that were denied to GM in an unscrupulous manner, the American car manufacturer is seeking billions in damages. As to how much exactly, that isn’t revealed as of yet.

Also, current FIAT executives are spared from the suit as it’s going after three former FCA execs.

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