GM Files Racketeering Suit Against FCA, Names Marchionne

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GM Files Racketeering Suit Against FCA, Names Marchionne
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General Motors Corp. said today it filed a federal racketeering lawsuit against rival Fiat Chrysler Automobiles and former FCA executives who have already pled guilty in the ongoing federal corruption investigation

and former FCA executives who have already pled guilty in the ongoing federal corruption investigation. Also named in the suit is FCA’s late CEO Sergio Marchionne, claiming he orchestrated a multimillion-dollar conspiracy in part, as a means to force a merger with GM. Marchionne died unexpectedly July 25, 2018. ...

The lawsuit claims “more than $1.5 million in bribes were paid to UAW officials by FCA and that “These FCA Group bribes were authorized by its then CEO Sergio Marchionne to General Holiefield, the UAW Vice President and International Executive Board Member who oversaw the FCA business relationship.”

FCA quickly responded with a statement expressing dismay at GM’s actions, charging its competitor with trying to throw a wrench into FCA’s proposed merger with French automaker PSA Groupe, saying “We are astonished by this filing, both its content and its timing. We can only assume this was intended to disrupt our proposed merger with PSA as well as our ongoing negotiations with the UAW.

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