Fiat Chrysler – GM Spat

CBJ — Preposterous. That was the essence of Fiat Chrysler’s response to allegations made last week by General Motors that the former had bribed union officials to cause turmoil at GM.

FCA lawyers say the attack read like a script from a “third-rate spy movie,” according to court documents.

In a motion filed a week earlier, GM alleged that Fiat Chrysler used foreign bank accounts to bribe union officials so they would stick GM with higher labour costs.

The Italian-American automakers says the claims are completely false as well as defamatory and baseless.

GM contends that bribes were paid to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice-President Joe Ashton. GM alleges that the payments were made so officials would saddle GM with more than $1 billion in additional labour costs.

In July, U.S. District Judge Paul Borman in Detroit tossed out GM’s lawsuit that alleged that Fiat Chrysler paid off union leaders to get better contract terms than GM.