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GM cites evidence of offshore accounts, wants FCA racketeering lawsuit revived

General Motors on Monday asked a U.S. federal judge to reinstate a racketeering lawsuit against Fiat Chrysler Automobiles NV (FCA), saying it has new information on foreign accounts used in an alleged bribery scheme involving its smaller rival and union leaders. In its filing to U.S. District Judge Paul Borman, GM says the scheme, which it alleges occurred between FCA executives and former United Auto Workers (UAW) leaders, "is much broader and deeper than previously suspected or revealed as it involved FCA Group apparently using various accounts in foreign countries ... to control corrupt individuals by compensating and corrupting those centrally involved in the scheme to harm GM." Last month, Borman threw out the racketeering lawsuit, saying the No. 1 U.S. automaker's alleged injuries were not caused by FCA's alleged violations. GM alleged FCA bribed UAW officials over many years to corrupt the bargaining process and gain advantages that cost GM billions of dollars. GM was seeking "substantial damages" that one analyst said could have totaled at least $6 billion. "These new facts warrant amending the court's prior judgment, so we are respectfully asking the court to reinstate the case," GM said in a statement. "FCA will continue to defend itself vigorously and pursue all available remedies in response to GM's attempts to resurrect this groundless lawsuit," FCA said in a statement. In affidavits accompanying GM's filing, attorneys for the automaker said "reliable information concerning the existence of foreign bank accounts" used in the alleged scheme had only come to light recently. "The UAW is unaware of any allegations regarding illicit off-shore accounts as claimed," by GM, the UAW said in a statement. "If GM actually has substantive information supporting its allegations, we ask that they provide it to us so we can take all appropriate actions." Earnings/Financials Government/Legal UAW/Unions Chrysler Fiat GM

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

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: Government/Legal UAW/Unions Chrysler Fiat GM

Fiat is quitting the minicar segment it dominates

Fiat plans to exit the minicar segment its global empire is built on. Strict safety and emissions regulations looming over the European new car market will soon make developing pocket-sized models prohibitively expensive, so the Italian firm will shift its attention to the next segment up. "In the very near future, you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment," announced Fiat Chrysler Automobiles (FCA) boss Mike Manley during a recent conference call with analysts. He didn't provide a specific time frame, but industry trade journal Automotive News speculated the move will happen by 2024. The 500 and the Panda, Fiat's entries in the segment, continue to sell relatively well in spite of their age. The 12-year old 500 was the 16th best-selling car in Europe in 2018; the eight-year old Panda finished in 20th position, but it led the Italian sales chart by a significant margin. Fiat already announced the next-generation 500 -- which likely won't be sold in the United States -- will only be offered with an electric powertrain, but the current car is expected to remain in production for as long as possible. The Panda's future is murkier; the 2019 Centoventi concept hinted at an electric replacement, but Manley's statement seemingly suggests Fiat shifted the project to the back burner. The next-generation 500 will make its debut at the 2020 Geneva auto show and go on sale shortly after. While the model will live on as an electric car, Fiat will focus on slightly bigger subcompact cars that enjoy thicker profit margins, like the Renault Clio and the Volkswagen Polo, Europe's second and third best-sellers (behind the Golf) in 2018. The Italian firm left the segment when it deep-sixed the Punto in 2018; it's now looking for a way back in. The on-going tie-up with Paris-based PSA Group would give it access to the new platform found under the Peugeot 208 and the Opel Corsa. It was developed with gasoline-, diesel-, and electric-powered drivetrains in mind. Fiat's rivals on the European market have recently come to a similar conclusion. The Ford Ka+ and the Opel/Vauxhall Karl retired earlier than expected, decisions partly blamed on sluggish sales, and Volkswagen will allegedly drop the gasoline-powered variant of the Up! to focus on the electric model. Smart's ForTwo and ForFour have gone electric-only.