Discussion in 'Mopar / FCA News' started by Polish Don, Nov 20, 2019.
I should have put a smiley behind my post. It was more a crazy idea than a serious thought...
Crazy or not, the idea really tickled my sense of whimsy!
Simple question (and I don't know, so am asking for an answer): who's a better employer for UAW members, GM or FCA?
If the answer to that question turn out to be "FCA", it's going to be really, really hard for GM to blame its failure to negotiate with the union on corruption.
FCA will counter-sue for "trade disparagement" or "commercial libel" (I don't know what it's called in US law), claiming that the only reason GM brought this case was to damage the reputation of FCA just as it was trying to negotiate a merger with PSA.
... that seems to have backfired, in any case, as PSA seem completely unfazed by the GM case, and the merger is going ahead.
Analysis: GM lawsuit could mean major liabilities for FCA (at https://www.crainsdetroit.com/analysis/analysis-gm-lawsuit-could-mean-major-liabilities-fca )
The fact that so much of GM's evidence is public record is worrisome. And, I believe that Ford is indeed watching this closely despite what Hackett says. They could get something out of this if GM prevails with little or no effort on their part.
If any wrongdoing was committed it was done at the corporate level far above daily operations at Chrysler. Exor should get stuck with the bill (if any), because Marchionne and Iacobelli were Elkann's boys. What does it mean for Chrysler if FCA loses? Maybe the PSA merger is called off, maybe Chrysler gets spun off, who knows at this point
Or replying by finding some proofs then GM had commited some sins too.
The rationale is that they can hire people more cheaply in Mexico. Nothing people don't know. Most people don't care, or you'd still be able to buy American clothing and such.
People do need grounds for lawsuits.
If I read the articles correctly doesn’t the lawsuit claim this plan to ”utilize” the UAW to take over GM goes back all the way to 2009? To me that is a little hard to imagine...
Just a question:
Why would you say Iacobelli was Elkann's guy.
Alphons Iacobelli was with Chrysler since 1993.
He had nothing to do with Fiat or Exor.
That’s not how a lawsuit works. You don’t have to be pure and innocent to prevail in a lawsuit. FCA obviously screwed up. GM just has to prove it led to damages.
I thought he reported directly to Marchionne. If not I stand corrected.
Too bad then Matlock and Perry Mason are only fictionnal characters, they could had been useful.....
Don't forget about Colombo, and J.B. Fletcher of Murder She Wrote fame.
This is definitely a case for Robert B. Parker's "Spenser".
While everyone is joking about the GM lawsuit, lots of other lawsuits over this are popping up. These lawsuits are aimed at investors and are class action lawsuits (the ones that benefit lawyers and give small awards to the class members). The gist of the lawsuits are that FCA's hidden "bribery scheme" behavior with the union caused investors to lose money when those hidden actions became public.
Like the GM lawsuit, there is probably some merit here.
I think in this case it would be called, “Merger, She Wrote”.
Whatever happened to innocent until proven guilty?
Shareholders sue Fiat Chrysler, Marchionne estate over racketeering case (at https://www.detroitnews.com/story/business/autos/chrysler/2019/12/03/shareholders-sue-fiat-chrysler-sergio-marchionne-estate-general-motors-racketeering-case/2596018001/ )
First, innocent until proven guilty is a fact for criminal law. These cases are civil in nature. Second a lawsuit is an accusation of wrongdoing and it is entirely possible shareholders were hurt by this revelation (and possibly benefited from these acts).
Almost every story that's popping up in my FCA finance news feed is yet another law firm collecting "victims" for class action lawsuits over stock losses from the disclosure of the corrupt bargaining. They smell blood.
Okay, what happens if GM loses this? Who pays if the class action wins?
1) If GM loses, they are out their legal fees. The likelihood that FCA has a valid counter-claim or that the lawsuit is dismissed as frivolous is small, IMO.
2) If the class action wins, it depends on if FCA or an individual is found liable. If both, then likely a percentage is assigned to both. My guess is it's "easier" to assign blame to a corporation than an individual (because that person was performing corporate duties when this happened) so the bulk of any award would likely be corporate.