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FCA news and general auto industry news don't seem to generate much interest in this forum, but it's worth noting that this week, General Motors filed a huge RICO suit against FCA, alleging corrupt dealings with the United Auto Workers that harmed GM. RICO stands for "Racketeer-Influenced and Corrupt Organizations." It's a federal statute originally designed to help stamp out organized crime, but that also authorizes civil actions by private parties. The law provides for -- this is the key -- treble (triple) damages as compensation for any harms that are proved. This means that literally billions of dollars are at stake.

GM's theory is that FCA paid off the UAW to screw over GM in contract talks. The government already has been investigating FCA and the UAW for corruption, so the defense won't be that the company is squeaky clean. Rather, FCA will probably argue (in addition to relying on the hypertechnical statutory defenses that are common in RICO civil actions) that GM can't prove it was harmed by any of the machinations. We'll see whether the R&D budget for the electric Cherokee goes into GM's pockets!

It remains to be seen whether, and how, this suit may affect the merger negotiations between FCA and PSA.
 
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