FCA Files Motion To Dismiss GM Racketeering Lawsuit Tied To Allegedly Rejected Merger

Fiat Chrysler Automobiles filed a motion Friday to dismiss General Motors’ racketeering lawsuit against the company.

In a sweeping suit filed in November, GM claimed that its smaller rival secured an unfair advantage in labor costs by bribing UAW officials during key contract negotiations covering wages and benefits. The suit alleges that Sergio Marchionne, the late FCA CEO, wanted to hurt GM in an effort to force a merger between the two companies.

Marchionne, the suit says, “formally solicited GM for a merger” in the spring of 2015, an offer that was rejected. From there, the suit alleges that Marchionne orchestrated and negotiated a collective bargaining agreement that was “designed, through the power of pattern bargaining, to cost GM billions.”