General Motors failed to sue FCA

General Motors failed to sue FCA

July 9, 2020 0 By autotimesnews

A federal judge dismissed the lawsuit filed by GM against its rival Fiat Chrysler Automobiles.

The court rejected the racket lawsuit filed by General Motors against its rival Fiat Chrysler Automobiles, stating that the alleged loss to a leading US automaker was not caused by alleged FCA violations. Representatives of the prosecution, in turn, stated that they “strongly disagree” with the decision of the US District Court judge Paul Bormann and will appeal.

“From the guilty pleas of former FCA executives, there is more than enough evidence that the company was engaged in racketeering, our complaint was timely and showed in detail how several million dollar bribes caused direct damage to GM,” the GM said.

in November 2019, GM filed a lawsuit against FCA for bribing officials of the United Auto Workers (UAW) for many years, which allowed the automaker to undermine the negotiations and gain benefits. As noted in the American company, as a result of these actions, GM suffered billions in losses.

“GM’s high labor costs were not losses caused mainly by FCA bribes, and any damage GM received as a result of FCA’s labor cost is indirect,” the court said.