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General Motors’ Attempt To Reinstate FCA Lawsuit Fails

General Motors‘ attempt to reinstate its lawsuit against Fiat Chrysler Automobiles has failed.

According to Reuters, U.S. District Judge Paul Borman ruled this week that the new evidence GM presented in its case against FCA was “too speculative to warrant reopening this case.”

GM attempted to reinstate its lawsuit against FCA by naming several individuals who were supposedly directly involved with FCA’s alleged corruption-related misdeeds. Among the people named as part of GM’s new evidence was former UAW vice president Joe Ashton, who GM accused of being a “paid mole” on its board of directors that was secretly working for FCA.

FCA took the opportunity to reiterate its stance that GM’s claims are without merit in a statement released this week.

“Judge Borman’s ruling this morning once again confirms what we have said from the beginning — that GM’s lawsuit is meritless — and its attempt to submit an amended complaint under the guise of asking the court to change its mind was nothing more than a baseless attempt to smear a competitor that is winning in the marketplace,” an FCA spokesperson said.

Former FCA CEO Sergio Marchionne

General Motors isn’t giving up, though. It plans to appeal the ruling and once again referenced the FBI’s ongoing investigation into the UAW as evidence of FCA’s corruption.

“Today’s decision is disappointing, as the corruption in this case is proven given the many guilty pleas from the ongoing federal investigation,” a GM spokesperson said. “GM’s suit will continue – we will not accept corruption.”

GM first filed suit against FCA last year, alleging the automaker corrupted the bargaining process with the UAW by offering bribes to secure a better labor deal than GM. The automaker also says FCA did this with the specific intent of weakening General Motors’ business to the point where it would be forced to enter a merger with FCA – something former CEO Sergio Marchionne had outwardly sought in the past.

GM CEO Mary Barra

Borman threw the case out in July, but GM then filed to have it reinstated after bringing forth new evidence. In addition to naming several individuals allegedly involved in the corruption, GM’s suit also listed several countries where FCA supposedly had offshore accounts to wire funds to those it was apparently conspiring with.  In response to these allegations, FCA said its ownership of foreign accounts was “unremarkable, and certainly not illegal,” given that it’s an Italian-American company.

FCA alluded that GM may have filed suit against it in order to prevent it from merging with French automaker Groupe PSA. FCA’s merger with the French automotive conglomerate is expected to be complete by the first quarter of 2021.

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Comments

  1. The fact that GMC would not make good on their claims while Americans have lost money by buying these defected cars and lawyers, GMC executive and the judge’s decision was ridiculous, ever body can assume the the decision was won by GMC before the law suit go started, billionaires had won this before it got started, they made it so that it looked like the cases was serious on both side, well I got like everyone else but I will never purchase a GMC, Chevrolet anymore I will take my money and rebuild the engine and sell it at a reasonable price and forget this company my they go bankrupted.

    Reply
    1. Do you have any idea what you are even talking about?

      Reply
      1. No doubt. Had to read that a couple times.

        Reply
    2. Doth thou speaketh the language of the Anglo Saxons?

      Reply
    3. This thread is about the GM lawsuit against FCA over alleged corruption of UAW officials.

      Put your complaint about the GMC “shift to park” in appropriate threads on that issue.

      Good luck

      Reply
  2. Just another pissed off GM customer!!!!

    I bet its a ” Known Faulty ” issue and he had to try to talk to a GM customer support person !!!

    Ha, Ha, Ha, Ha, as if there is a GM customer support system, that’s funny !!!

    Timothy, I feel for you !!!, GM is just HORRIBLE at customer relations !!!

    The new GM vehicles are ONLY made to make it as long as the Warranty, and no longer !!!
    And some here would argue GM doesn’t even have a warranty any longer, as they will NOT fix the GM 8 speed junk transmission and say its normal operation !!! Ha, as if the customer doesn’t know what a normal transmission operates like !!
    I’m done with GM also !

    I just don’t get it !!! GM will spend millions on lawyers, and analysts, yet the people who make all of that possible, THE CUSTOMER, cant get the cheap ” Known Faulty ” issues taken care of.

    Reply
  3. I’m happy for FCA(soon Stellantis)GM failed to trial them once again 🙂

    Reply
    1. GM needs to do some housecleaning in their legal dept.

      Reply
  4. GM customer service came through for me many times. I had a 1992 Olds Achieva they gave me a new engine at 48,000 miles and repainted the car at 90,000 miles. My 2004 Pontiac GTO had a major water intrusion and was fixed including new carpet. They also paid for my rental cars. One time they didn’t come through for me. But I’ll take a .750 batting avg every time.

    Reply

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