GM sues FCA, alleging corruption of bargaining process with union

GM sues FCA, alleging corruption of bargaining process with union

FILE PHOTO: The GM logo is seen at the General Motors Warren Transmission Operations Plant in Warren, Michigan October 26, 2015. Photo taken October 26. REUTERS/Rebecca Cook

DETROIT (Reuters) – General Motors Co (GM.N) on Wednesday filed a racketeering lawsuit against Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N), alleging that its rival engaged in bribery to corrupt the bargaining process with the United Auto Workers (UAW) union and gain wage and work practices advantages over GM.

GM said will seek “substantial damages” in the case, which stems from an ongoing federal probe into the UAW and FCA. GM General Counsel Craig Glidden told reporters that the lawsuit has nothing to do with FCA’s planned merger with PSA (PEUP.PA) and the automaker does not intend to file suit against the UAW.

Reporting by Nick Carey in Detroit; Editing by Matthew Lewis

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