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GM accuses Fiat Chrysler of corrupt bargaining with UAW

Discussion in 'Mopar News' started by Polish Don, Nov 20, 2019.

  1. Polish Don

    Polish Don Member

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  2. Chase300

    Chase300 Well-Known Member

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    Well if you can't beat them with your product...sue!
     
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  3. IronMike3406

    IronMike3406 Well-Known Member

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    I think this is GM way of saying something about the Merger with PSA we all know that Opel still uses some of GM tech and this is their way of trying to extort money. Just my thought !!!
     
  4. Mr. Fusion

    Mr. Fusion Active Member

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    Here is a link to the Detroit Free Press article, which has a couple of details that I didn't see in the Detroit News article.

    So, yeah...this story is bonkers. Any credibility of the accusation is squandered, in my view, by who is making the accusation, and the manner in which they are making it. In other words, this is an extremely serious issue, which GM is making extremely hard to take seriously.

    * Didn't you just suffer a nasty strike by UAW?
    GM: "Trust us, this has nothing to do with that."

    * You just completed negotiating your contract with UAW, and now FCA is in the middle of their own negotiations...
    GM: "The timing is just a coincidence."

    * FCA just announced an ambitious and hopefully beneficial merger with PSA.
    GM: "This is definitely not an attempt to throw cold water on that! Really!!"

    * Didn't two of the convicted FCA racketeers also work for GM?
    GM: "Er...hey, look over there!"
     
  5. saltydog

    saltydog Well-Known Member

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    Insert eye roll.....
     
  6. AHBGuru

    AHBGuru Active Member

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    Let me use my finest Ron Burgundy voice here:

    "I think it's super-fantastic that GM is doing so well, that they're able to squander away hundreds of thousands (at the least) on a laughably frivolous filing."
     
  7. 1999 White C5 Coupe

    1999 White C5 Coupe Well-Known Member

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    I firmly believe this lawsuit is just one piece of the pie.

    There have been 10 felony convictions to date, involving former high-ranking FCA and UAW officials. There are three indictments issued, without a resolution yet. The Federal criminal investigations (various departments) are very active and ongoing. The current UAW president has taken a leave of absence, and has been identified as being criminally complicit in court filings.

    The corruption involving GM and FCA and the UAW is almost unprecedented and sickening. This matter has all the earmarks of a huge, far-reaching criminal conspiracy involving organized criminal behavior.
     
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  8. Dave Z

    Dave Z It's me, Dave
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    GM is just as implicated in the UAW corruption as FCA. It's not unprecedented, though. Nor do I agree that it “has all the earmarks of a huge, far-reaching criminal conspiracy involving organized criminal behavior.”

    I don't think FCA or GM got what they paid for, really.

    My story: GM is suing FCA for … you’ve got to read this, it’s nuts

    A similarly tuned story, but with some different nuances: Well, this is weird: GM suing FCA for “corrupting labor talks” (at https://www.autobison.com/2019/11/well-this-is-weird-gm-suing-fca-for-corrupting-labor-talks/ )
     
  9. T_690

    T_690 Well-Known Member

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  10. Dave Z

    Dave Z It's me, Dave
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    That's so good, it's going into the news piece.
     
  11. Dave Z

    Dave Z It's me, Dave
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    Yeah, I know you think Fiat's on top of the world in small engines, but I wasn't referring to the 1.3 GSE. I was referring to the 1.6 hybrid. Every FCA move in hybrids seems to be glacial in speed. The FCA small/medium platforms aren't working out that well in the US. The Compass is doing well, Renegade’s a flop, anything with the Fiat label is a flop, and every Alfa’s a flop over here. CUSW worked out great for the Cherokee and as modified for Pacifica, but it flopped as the 200 and Dart. We’re surviving on the big stuff for the moment. Maybe the 1.3 will be great, maybe not.
     
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  12. T_690

    T_690 Well-Known Member

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    PSA's electrification implementation and its marketing are not in advanced stage in comparison to FCA.

    More or less they are introducing P4 PHEV tech at the same time while PSA does not have plans for dedicated BEV platforms, 800 Volts BEV architecture and will introduce P2 MHEV full year after FCA.

    This merger is all about scale of production. And that's it.
     
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  13. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    At this rate, Roger B. Smith will look more competent than Mary Barra. :rolleyes:
     
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  14. 1999 White C5 Coupe

    1999 White C5 Coupe Well-Known Member

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    With all due respect, FCA is currently negotiating with the Federal government regarding the payment of bribes and corrupt behavior with the UAW, which may result in Federal oversight of FCA: Fiat Chrysler negotiates with feds to resolve corruption probe (at https://www.detroitnews.com/story/business/autos/chrysler/2019/06/19/fiat-chrysler-negotiates-feds-resolve-corruption-probe/1489636001/ )

    It was a (now former) FCA Vice President that was convicted of Federal felony charges, involving the payment of bribes involving the UAW, and is now in prison.
     
  15. Mr. Fusion

    Mr. Fusion Active Member

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    Thanks Dave!

    Look Ma, I finally made it! :D
     
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  16. LXbuilder

    LXbuilder Well-Known Member

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    Good way to sabotage the FCA/PSA deal and avoid falling behind them in size. (after having PSA humiliate them by turning around their decades long, losing Euro operations in about a year)
    And also sends a strong message to the UAW to bring FCA "all in" labour costs up to the same level as GM and Ford. They aren't really looking for compensation. IMO
     
  17. HotCarNut

    HotCarNut Defender of Reality
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    I've got a couple of thoughts about this thing:
    1. GM has lost their collective minds - they are just as complicit and nobody is going to buy that FCA would want to inherit more expensive terms in a merger
    2. SM was probably involved in the bribery scandal
    3. The timing is deeply suspect
    4. PSA union reps will be lining up for their bribes - pretty standard in France
    5. Italian union reps will be comparing notes on what the UAW reps got

    Long term? Nothing happens. The clue is that federal prosecutors didn't bring a RICO charge against FCA. GM is basically operating a smear campaign, but in their usual brilliance they pointed the gun at their own head along with FCAs. I genuinely wish that Mary Barra and Co weren't so dumb....the lack of true executive talent at GM is criminal.
     
  18. 1969 300

    1969 300 Well-Known Member

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    And GM indirectly allowed this to happen by selling out its European operations to PSA. GM is just eating sour grapes because PSA could make Opel profitable with essentially GM's legacy products, while GM management could not.
     
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  19. 1969 300

    1969 300 Well-Known Member

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    It is scary. I thought it would be impossible that GM could have poorer leadership than Roger Smith.
     
  20. 1969 300

    1969 300 Well-Known Member

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    Some food for thought:
    • GM said "Something's wrong when a foreign company can come to the United States and obtain ownership and control of a key, iconic automaker and say they will abide by the laws of the United States. And then intentionally ... violate those laws. We believe that happened in this case, and we also believe that Sergio Marchionne was aware of it, sponsored it and participated in it." News flash: GM was offered Chrysler in 2008 but it rejected it. That "foreign company" doubled its UAW workforce and added plants and now employs more UAW members than GM. Isn’t the “great American company” GM the ones that are importing more cars into the US from Mexico and China than anyone else and is Mexico’s number one automaker?
    • If memory serves me correctly, was not FCA the UAW target in 2011 and 2015? If that is the case, GM should have known the contract that FCA had with the UAW and proceeded accordingly. It seems who was ever handling the contract at GM did not do their homework.
    • GM said that any money it extracts from FCA will be used to update its US facilities and create jobs here. Wasn’t GM just crying overcapacity? Cannot GM update its plants and hire people from the record profits they made over the past few years?
     

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