QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

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Thread: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

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    News Contributor Premium Member Perian's Avatar
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    QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Automotive News
    November 22, 2019

    The racketeering lawsuit brought by General Motors against Fiat Chrysler Automobiles is a legal bombshell for the U.S. car industry.

    GM’s broadside lays out in forensic detail how FCA allegedly conspired over many years to funnel payments to UAW officials, corrupt the collective bargaining process on wages and thus secure a competitive advantage. In essence, it’s trying to rewrite the American auto industry’s past decade of history, which saw both GM and Chrysler bounce back dramatically from Chapter 11 bankruptcy.

    In GM’s telling, the merger of Italy’s Fiat with Michigan’s Chrysler and their subsequent renaissance under the leadership of Sergio Marchionne was built on corruption. It may have a hard time proving parts of its case, particularly its assertion that the goal of the alleged conspiracy was to weaken GM and force it into a merger with Fiat.

    The Italian company says the lawsuit is groundless, implying that any bribe-paying would have been a case of a few bad apples. This is an awkward defense, though: Federal prosecutors have accused FCA managers of trying to keep union officials “fat, dumb and happy” and three of the company’s executives have pleaded guilty to various charges.

    Regardless of whether GM succeeds in extracting billions of dollars compensation from its rival, the lawsuit seems calculated to punish Fiat and destabilize its recovery. Fiat’s proposed merger with France’s Peugeot SA, a prospective labor deal with the UAW and the reputation of the deceased Marchionne are in the balance. Relations between the two carmakers and with America’s trade unions will never be the same again.








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    News Contributor Premium Member Perian's Avatar
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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    GM’s move also puts the screws on the UAW to bargain particularly hard with FCA over a new labor deal. If the union fails to emerge with good terms from those talks, it will look beholden to a carmaker from whom former officials allegedly accepted bribes.
    Incredible timing for sure. You (apparently) don't mess with Mary...









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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    I don't really get it....so if their end goal was to force a merger, wouldn't that reason be thrown out because FCA already merged w/ someone else? I mean if they were truly trying to force a merger, they'd "still be looking for a dance partner" right now while they wait for a weakened GM to be forced to come back to the table? That seems like a long shot to prove.

    All they really have to stand on now is that FCA bribed union officials to get a cheaper UAW deal while they (GM) didn't bribe the UAW and are now subject to UAW strongarm tactics. FCA can just pin this on Marchionne and claim that his death over a year and a half ago had no effect on GMs bargaining position w/ the UAW.

    But...I could be wrong, who really, truly knows anything anymore.
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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Good for GM for not letting them get away with it. I'm certain this is not made up litigation, otherwise they wouldn't be doing this. Might be hard for GM to prove, but I bet something did happen.

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Quote Originally Posted by BlackGTP View Post
    Good for GM for not letting them get away with it. I'm certain this is not made up litigation, otherwise they wouldn't be doing this. Might be hard for GM to prove, but I bet something did happen.
    Courts can severely sanction people or companies, including their attorneys, that file baseless or frivolous lawsuits. I’d bet that this is not a frivolous or baseless lawsuit, and that they have plenty of evidence (including the criminal convictions and evidence obtained so far by the Federal government).

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    I believe GM over Fiat. There are many corrupt officials in Italy. Look at Amanda Marie Knox who got charged of murdering her roommate and finally got release after four years in their jail.

    I hope GM wins their case bigtime!

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    Quote Originally Posted by Al465 View Post
    I believe GM over Fiat. There are many corrupt officials in Italy.
    And there is no corruption elsewhere?

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Clean house on 'em Mother Mary.

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Quote Originally Posted by Sneakers View Post
    And there is no corruption elsewhere?
    Yeah, if they didn't commited a sin, throw the first rock.

    Btw, as mentionned in an other thread by Sierra12. https://www.gminsidenews.com/forums/...ml#post7204853
    https://www.autonews.com/blogs/alpho...-keeps-turning

    Reading into the details of the bombshell lawsuit, GM's lawyers did their homework. And it's a good bet they used information from their former employee, Iacobelli. The lawsuit names Iacobelli 66 times in 95 pages. Curiously, when describing Iacobelli's role at FCA, GM's lawyers neglected to mention that he worked for GM after his criminal activity took place.
    And a good one posted on Allpar forums. https://www.allpar.com/forums/thread...ost-1085149855

    I think that GM is pissed because FCA got at least one part of GM- Opel. It looks kind of silly that a number 4 automaker is suing a number 7 automaker. If GM really wants to go after someone, why not Toyota? They have been racketeering with the Japanese government for currency manipulation and other hidden tariffs for decades.

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    This lawsuit is based 100% what the FBI has uncovered about UAW and Chrysler. It seems to me it has merit

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Sounds like it could be sour-grapes-eating GM attempting to use lawfare to compensate for a perceived potential lack of long-term competitiveness with the emergent FCA-PSA.

    Trying to throw a monkey wrench into the mix of merger talks? I think it's pretty likely.

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Quote Originally Posted by sfbreh View Post
    Sounds like it could be sour-grapes-eating GM attempting to use lawfare to compensate for a perceived potential lack of long-term competitiveness with the emergent FCA-PSA.

    Trying to throw a monkey wrench into the mix of merger talks? I think it's pretty likely.
    There's an interesting take on the situation.

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Quote Originally Posted by Stéphane Dumas View Post
    And a good one posted on Allpar forums
    Speaking of Allpar, here's another post there:

    Highly informal analysis from Allpar’s “Mr. Fusion”:
    * Didn’t you just suffer a nasty strike by UAW?
    GM: “Trust us, this has nothing to do with that.”

    * You just completed negotiating your contract with UAW, and now FCA is in the middle of their own negotiations…
    GM: “The timing is just a coincidence.”

    * FCA just announced an ambitious and hopefully beneficial merger with PSA.
    GM: “This is definitely not an attempt to throw cold water on that! Really!!”

    * Didn’t two of the convicted FCA racketeers also work for GM?
    GM: “Er…hey, look over there!”
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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    The Detroit Free Press had posted an other article about this. https://www.freep.com/story/money/ca...co/4249082002/

    The Detroit-based automaker that builds the popular Chevrolet Silverado is claiming its Auburn Hills-based competitor, behind the Jeep and Ram brands, went so far as to violate RICO — the Racketeer Influenced and Corrupt Organizations Act, a law created half a century ago to fight the mafia.

    With RICO, criminal defendants can be charged as coconspirators and cases bundled when multiple crimes are committed. It is often used by federal prosecutors to pursue public corruption and white-collar fraud cases. It was used to prosecute imprisoned former Detroit Mayor Kwame Kilpatrick and his compatriots, and has been used to prosecute cases involving corrupt police departments and the Gambino crime family, for example.

    The law also permits civil cases if deceptive conduct can be proved, and a favorable verdict for the plaintiff can result in triple damages plus attorney’s fees.
    And one guy posted that comment. https://www.freep.com/story/money/ca...17042501671176

    Let's take the recent GM/UAW contract that was just ratified. Temp workers path to reaching full progression wages was just shortened considerably. With pattern bargining, the UAW is going to bargain for similar terms with FCA.

    Since FCA has a much higher % of temp workers than GM, could that indicate that GM colluded with the UAW to make FCA less competitive?

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    Re: QOTD: "General Motors Declares Corporate War On Fiat Chrysler"

    Sounds like desperation to me - GM is in serious trouble after making multiple bad decisions.

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