General Motors filed a racketeering lawsuit against Fiat Chrysler claiming UAW bribes cost it billions
), alleging that its rival bribed United Auto Workers union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.
“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.” The UAW said in a statement, “We are confident that the terms of those contracts were not affected” by the actions of FCA or UAW officials. It said it was “regrettable” that these issues can cause doubts about the contracts.
The lawsuit claims that among the “benefits, concessions and advantages illegally purchased by FCA” was UAW support for “World Class Manufacturing,” a version of Toyota Motor Corp’s lean production strategy but adapted to the culture of Italian automaker Fiat.
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