July 15, 2024
GM Asks US Supreme Court To Review Racketeering Case Against FCA

General Motors has one last option remaining in its racketeering case against Fiat Chrysler Automobiles (FCA). That is, GM might have one more option. The Detroit-based automaker has filed for an audience with the US Supreme Court to review a case originally filed in 2019 and dismissed in 2020. Whether the nation’s highest court takes the case remains to be seen.

GM has filed numerous appeals in the case, which has roots back in 2017 with a scandal involving FCA and the United Autoworkers Union (UAW). GM’s latest appeal was turned down in August 2022, with a three-judge panel of the US 6th Circuit Court of Appeals upholding the previous decision. In the ruling, the panel indicated that even if GM’s claims were true, potential injury to the company was diminished.

According to The Detroit Free Press, GM’s new filing with the Supreme Court claims the conclusion of the appeals court defied “statutory text, precedent, and common sense” by holding GM couldn’t recover any damages. GM’s filing reportedly states the automaker “was the direct and intended victim of this quintessential racketeering scheme.”

The scheme in question long predates the Stellantis merger. GM alleges former FCA CEO Sergio Marchionne negatively affected the bargaining process for GM and the UAW, ultimately forcing GM to carry much higher labor costs. The claim further states that this was done to try and force a merger between FCA and GM.

Before his death in 2018, Marchionne was actively seeking a merger for FCA. At various points, rumors had Hyundai being a potential partner. A deal with Renault was in the works, but the Peugeot-Citroën conglomerate ultimately finalized a merger that created Stellantis. FCA still operates as the US arm of Stellantis.

In a statement to The Detroit Free Press, a Stellantis spokesperson said the lawsuit “is meritless and we will continue to defend ourselves vigorously and pursue all available remedies in response to this groundless lawsuit.”

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