GM Left Fuming After Judge Dismisses Lawsuit Against Fiat Chrysler

Industry News / Comments

This isn't over yet.

For a decade straight, the Chevrolet Camaro from General Motors and Fiat Chrysler Automobile's Dodge Challenger have battled for muscle car supremacy on the street, on the track, and on the sales charts. But this isn't the only battle being fought between these two major global automakers.

Last November, GM first filed a racketeering lawsuit against FCA. Specifically, GM accused FCA of attaining a competitive advantage in labor costs by bribing union officials. This lawsuit has now been dismissed by US District Judge Paul Borman.

According to a report by Automotive News, Borman described the lawsuit as a waste of both time and resources last month. But Mary Barra, CEO of GM, said last year that FCA's unfair advantage in terms of labor contracts goes back to 2009.

GM/FCA
Steve Fecht for General Motors
FCA

Unsurprisingly, FCA concurs with the judge's ruling. In a statement, the parent company of Dodge and Jeep said: "We have said from the very outset that this was a meritless lawsuit. The dismissal of GM's complaint with prejudice earlier today vindicates our position."

Borman went on to assert that under the Racketeer Influenced and Corrupt Organizations Act, there should be proof of a direct link between GM's inquiry and FCA's conduct, which GM's allegation does not support. GM has no intention of letting the matter rest, though, and was quick to disagree with the court order.

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FCA
FCA
FCA

"There is more than enough evidence from the guilty pleas of former FCA executives to conclude that the company engaged in racketeering," said Jim Cain, a GM spokesman. "Our complaint was timely and showed in detail how their multi-million dollar bribes caused direct harm to GM."

On June 23, Borman allegedly ordered the CEOs of both companies to meet with the hope of finding a resolution, saying that if this didn't happen, the case could take years. Although the 6th US Circuit Court of Appeals said that Borman abused his power by asking the two CEOs to convene, it still denied a request by GM for a new judge to take over the case.

With GM saying it will pursue its legal remedies following Borman's dismissal, it remains to be seen what happens next.

2019-2021 Chevrolet Camaro Coupe Front View Chevrolet
2019-2021 Chevrolet Camaro Coupe Rear Angle View Chevrolet
2014-2020 Dodge Challenger R/T Front View Dodge
2014-2020 Dodge Challenger R/T Rear View Dodge
Source Credits: Automotive News

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