GM Accuses FCA of Bribery, Corruption in RICO Suit
General Motors has sued Fiat Chrysler in federal court, alleging FCA bribed United Auto Workers officials to secure concessions that included an undue share of lower-wage workers.

General Motors has filed a racketeering lawsuit against its crosstown competitor, Fiat Chrysler Automobiles, in the U.S. District Court for the Eastern District of Michigan.
Photo by Andrew Jameson via Wikimedia Commons
DETROIT — General Motors Co. has filed a lawsuit in the U.S. District Court in Detroit, accusing Fiat Chrysler Automobiles NV of bribery and corruption stemming from FCA’s dealings with the United Auto Workers union.
In a statement, GM executives said FCA paid millions of dollars in bribes to UAW officials in 2009, 2011, and 2005, corrupting the bargaining process to gain a competitive edge in violation of the federal Racketeer Influenced and Corrupt Organizations Act. They believe the alleged payouts resulted in larger allotments of lower-wage second tier and temporary workers, allowing FCA to control labor costs at its competitors’ expense.
Read: Chrysler Dealers to Appeal Claims Court Loss
“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time. … FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational advantages, causing harm to GM,” the statement reads, in part.
“This astonishing ploy comes at a time when FCA is proving itself to be an ever more formidable competitor.”
The lawsuit coincides with an ongoing federal investigation into UAW leadership that has already resulted in charges against three former FCA executives. It also follows the end of a six-week work stoppage resulting from a UAW strike at GM plants and the commencement of negotiations over a new labor pact between the UAW and FCA.
Meanwhile, earlier this month, FCA announced a deal had been reached to merge the Italian and American manufacturer with France’s PSA Group. The combined company would outrank GM as the world’s No. 4 automaker.
Read: FCA, PSA Reach Tentative Merger Deal
“This astonishing ploy comes at a time when FCA is proving itself to be an ever more formidable competitor that continues to create significant value for all its stakeholders through the successful implementation of its long-term strategy,” Fiat Chrysler executives wrote in a release. “This includes the proposed merger with PSA, which itself completed the successful turnaround of the European businesses it acquired not long ago from General Motors.”
“FCA is confident that it will prevail in defending itself against these claims in court and will also pursue all available remedies in response to this groundless lawsuit,” they added.
Read: Bloomberg: FCA Banking Unordered Vehicles, Pressuring Dealers
Originally posted on Auto Dealer Today
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →