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Fiat Chrysler denies GM's 'preposterous' bribery allegations

DETROIT — Allegations by General Motors that Fiat Chrysler Automobiles bribed union officials are “preposterous” and read like a script from a “third-rate spy movie,” FCA lawyers wrote in court documents filed Monday. GM, in a court motion last week, alleged that Fiat Chrysler used foreign bank accounts to bribe union officials so they would stick GM with higher labor costs. But in a response, the Italian-American automaker fired back, calling GMÂ’s claims “defamatory and baseless.” GM alleged in a court filing last week that FCA spent millions on bribes by stashing the money in foreign accounts. The allegations of new evidence were made in a motion asking a federal judge to reconsider his July dismissal of a federal racketeering lawsuit against Fiat Chrysler. In trying to revive the lawsuit, GM alleged that bribes were paid to two former United Auto Workers presidents, as well as a former union vice president and at least one former GM employee. In its response, Fiat Chrysler said GM has to know that the prospect of getting the judge to overturn the dismissal is slim to none. “So this motion is apparently a vehicle to make more defamatory and baseless accusations about a competitor that is winning in the marketplace.” FCA denied allegations by GM that FCA paid two “moles” to infiltrate GM and send inside information. The company also denied that foreign bank accounts were involved. “That GM has extended its attacks to individual FCA officers and employees, making wild allegations against them without a shred of factual support, is despicable,” FCA lawyers wrote. GM's claims are based on the alleged existence of foreign bank accounts, which are legal, Fiat Chrysler wrote. “There is not one well-pled allegation in the proposed amended complaint (by GM) that these foreign bank accounts were used to pay bribes or facilitate any other illegal conduct,” FCA's response said. GM contends that bribes were paid to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also alleges money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM. GM alleges that payments were made so the officials would saddle GM with more than $1 billion in additional labor costs.

Junkyard Gem: 2012 Fiat 500 Sport

Fiat left the United States after selling its last Stradas, 124 Sport Spiders and X1/9s as 1982 models, taking Lancia with it. Malcolm Bricklin continued importing the 124 Sport Spider and X1/9 (with Pininfarina and Bertone badging) for a few more years, but it just wasn't the same for American fans of the venerable Italian manufacturer. Fast-forward to Chrysler's Chapter 11 bankruptcy in 2009 and Fiat's investment in the company and it wasn't long before the announcement came that Fiat was returning to our shores. The first Fabbrica Italiana Automobil di Torino product to hit our streets as part of that deal was the 500, which debuted as a 2012 model. That's serious automotive history, which is what this series is all about, so I have documented this first-year 500 in a Denver car graveyard. I've written about many, many discarded Fiats over the years, including some respectably old cars, but the Nuova Cinquecento never sold very well here, and the surviving examples tend to be too valuable to end up in a Ewe Pullet. That car was built from 1957 through 1975 and was a huge success in Europe, with nearly 4 million units sold, and its name reminded Europeans of its just-as-beloved 500 Topolino predecessor. A retro-styled modern 500 made a great deal of sense, and Polish-built 500s hit European showrooms beginning in 2007. While the 500 name didn't conjure up happy childhood memories with American car shoppers, so what? The car looked adorable and those old enough to have unpleasant memories of the temperamental Fiats of the 1970s probably weren't going to care what old Fiat model it looked like. I am old enough to remember those 1970s Fiats (my parents bought a pair of new Fiat 128s when I was in the first grade), but I was excited about Fiat's return in 2011 and reviewed a 500 Sport in April of that year. It wasn't a great fit with the tastes of mainstream American vehicle shoppers, sadly, and it got the axe here after 2019. A new electron-fueled 500e should be available any minute now, so the American Fiat 500 story is nowhere near finished. This car has the Sport trim level, so its MSRP was $17,500 (about $23,959 in 2024 dollars). It has the optional six-speed automatic transmission, which added $1,000 to the price ($1,369 after inflation). The engine is a 1.4-liter MultiAir straight-four rated at 101 horsepower and 98 pound-feet. Members of this engine family have powered everything from the Alfa Romeo Giulietta to the Jeep Renegade.

Weekly Recap: Chrysler forges ahead with new name, same mission

Chrysler is history. Sort of. The 89-year-old automaker was absorbed into the Fiat Chrysler Automobiles conglomerate that officially launched this fall, and now the local operations will no longer use the Chrysler Group name. Instead, it's FCA US LLC. Catchy, eh? Here's what it means: The sign outside Chrysler's Auburn Hills, MI, headquarters says FCA (which it already did) and obviously, all official documents use the new name, rather than Chrysler. That's about it. The executives, brands and location of the headquarters aren't changing. You'll still be able to buy a Chrysler 200. It's just made by FCA US LLC. This reinforces that FCA is one company going forward – the seventh largest automaker in the world – not a Fiat-Chrysler dual kingdom. While the move is symbolic, it is a conflicting moment for Detroiters, though nothing is really changing. Chrysler has been owned by someone else (Daimler, Cerberus) for the better part of two decades, but it still seemed like it was Chrysler in the traditional sense: A Big 3 automaker in Detroit. Now, it's clearly the US division of a multinational industrial empire; that's good thing for its future stability, but bittersweet nonetheless. Undoubtedly, it's an emotion that's also being felt at Fiat's Turin, Italy, headquarters as the company will no longer officially be called Fiat there. Digest that for a moment. What began in 1899 as the Societa Anonima Fabbrica Italiana di Automobili Torino – or FIAT – is now FCA Italy SpA. In a statement, FCA said the move "is intended to emphasize the fact that all group companies worldwide are part of a single organization." The new names are the latest changes orchestrated by CEO Sergio Marchionne, who continues to makeover FCA as an international automaker that has ties to its heritage – but isn't tied down by it. Everything from the planned spinoff of Ferrari, a new FCA headquarters in London and the pending demise of the Dodge Grand Caravan in 2016 has shown that the company is willing to move quickly, even if it's controversial. While renaming the United States and Italian divisions were the moves most likely to spur controversy, FCA said other regions across the globe will undergo similar name changes this year. Despite the mixed emotions, it's worth noting: The name of the merged company that oversees all of these far-flung units is Fiat Chrysler Automobiles. Obviously the Chrysler corporate name isn't completely history.