GM seeks appeals court ruling to continue legal fight with Fiat Chrysler

Reuters



DETROIT — General Motors on Friday asked a U.S. appeals court to allow it to continue pursuing its civil racketeering suit against rival Fiat Chrysler Automobiles, rejecting a lower court judge's belittling of the complaint.

The automaker's filing with the Sixth Circuit Court of Appeals comes less than a week after U.S. District Court Judge Paul Borman called GM's suit against Fiat Chrysler a "waste of time and resources" at a time when both automakers should be focused on surviving the coronavirus pandemic.

Borman ordered GM Chief Executive Mary Barra and Fiat Chrysler CEO Mike Manley to meet by July 1 to negotiate a resolution.

"As we have said from the date this lawsuit was filed, it is meritless," FCA said on Friday.

"FCA will continue to defend itself vigorously and pursue all available remedies in response to GM's groundless lawsuit. We stand ready to comply with Judge Borman's order," it added.

In its motion, GM asked the appeals court to throw out Borman's order and reassign the case to a different district court judge. It called Borman's order "unprecedented" and "a profound abuse" of judicial power.

GM sued Fiat Chrysler last year, accusing the Italian-American company's executives of bribing United Auto Workers union officials to secure labor agreements that put GM at a disadvantage. Fiat Chrysler is under investigation by the U.S. Justice Department as part of a wide-ranging probe of UAW corruption.

GM's accusations came as Fiat Chrysler and French automaker Peugeot were in the early stages of preparing for a merger. Fiat Chrysler has said the suit was aimed at disrupting that deal. GM has said the suit has nothing to do with the merger.

In a statement, GM rejected Borman's characterization of the suit as a "distraction" and defended its decision to press the case.

"We filed a lawsuit against FCA for the same reason the U.S. Department of Justice continues to investigate the company: former FCA executives admitted they conspired to use bribes to gain labor benefits, concessions and advantages. Based on the direct harm to GM these actions caused, we believe FCA must be held accountable."

Related Video:


Click here to See Video >>



More From

  • This Ford Mustang Mach-E prototype goes fast and does donuts

    The 2021 Ford Mustang Mach-E in GT spec is sure to be a hoot with 459 horsepower and 619 pound-feet of torque. It was all taken at North Carolina Center for Automotive Research according to Jalopnik and Road & Track.

  • Harley-Davidson will lay off 500 employees as part of turnaround strategy

    Harley-Davidson on Thursday said it will lay off 500 employees this year as part of new Chief Executive Jochen Zeitz's efforts to revive the struggling motorcycle maker. As part of the overhaul, Chief Financial Officer John Olin will leave the company effective immediately. Darrell Thomas, treasurer, will become interim chief financial officer, it said.

  • 2021 Mercedes-AMG GT Black Series looks hardcore

    It's finally official, Mercedes-AMG has revealed the ultimate version of the ultimate version of its ultimate sports car: the 2021 Mercedes-AMG GT Black Series. The announcement comes somewhat unexpected in the form of a trailer that clearly shows an uncovered example of the track-oriented supercar.

  • Ford faces internal pressure to end production of police-spec vehicles [Updated]

    A group of Ford employees has reportedly asked company executives to rethink its role in supplying vehicles to law enforcement organizations, making it the first large automotive manufacturer known to be facing internal pressure to change its relationship with American police departments. The letter, which tipsters revealed to Jalopnik, was reportedly written by a group of employees (approximately 100, per the Detroit Free Press) who are concerned about Ford's cozy relationship with U.S. law enforcement agencies. It comes in the wake of a message delivered to company employees in early June calling for employees to come forward with suggestions for addressing racial and social injustice.