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General Motors Asks Court To Reinstate Racketeering Suit Against Fiat Chrysler

General Motors has filed another appeal seeking to have its racketeering lawsuit against Fiat Chrysler Automobiles reinstated.

The automaker already filed a notice of appeal over the FCA suit in August, but it has now officially gone forward with the request, Automotive News reports, continuing the strenuous legal battle between the two Big Three rivals.

“We are confident in our case and filed this appeal to continue to seek redress, as permitted under the law, for damages FCA’s systemic corruption caused GM,” a spokesperson for the automaker said this week. “We have a responsibility to our employees and shareholders to hold FCA accountable and seek justice when we are targeted and directly harmed. We look forward to presenting our case to the (U.S. 6th Circuit Court of Appeals).”

GM sued FCA in late 2019, accusing the automaker of conspiring with the UAW in order to receive preferential treatment during labor negotiations with the union. GM also accused FCA of attempting to harm its business by instructing FCA to refrain from offering it concessions during contract negotiations that it otherwise would have. U.S. District Judge Paul Borman dismissed the case with prejudice earlier this year, saying there was no evidence that FCA conspired to harm GM by conspiring with the UAW. He also noted that the victims of any corruption between FCA and the UAW would be paying union members and not GM itself.

GM CEO Mary Barra

GM presented new evidence to Borman as it sought to have the case reopened, though these appeals were also dismissed by Borman. FCA has consistently denied GM’s accusations, calling the claims “baseless” and likening certain accusations to the plot from a “third rate spy movie.”

FCA CEO Mike Manley

GM also tried to have Borman removed from the case after he tried to force GM CEO Mary Barra and FCA CEO Mike Manley to meet and talk the issue out. The automaker said this ruling was a “profound abuse,” of Borman’s power and noted that the court “possesses no authority to order the CEOs of GM and FCA to engage in settlement discussions,” of this manner.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comment

  1. Barra should never of sold Opel to PSA. Now PSA is embolden by the Opel sale and is seeking to control FCA. With this merger PSA/FCA will be the largest domestic carmaker, and it will also drop GM to fifth place in international market share. Suing FCA won’t disguise the fact Barra made a horrible strategic error in selling off Opel.

    Check mate Mary Barra……..

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