Timeline: What led GM to sue rival Fiat Chrysler over bribery accusations

(Bloomberg) -- General Motors Co.’s surprise lawsuit against crosstown rival Fiat Chrysler Automobiles NV is the latest chapter in a multi-year saga involving illicit payments made by former Fiat Chrysler executives to union leaders, allegedly to smooth passage of labor contracts.

File photo (Reuters)
File photo

In a lawsuit filed Wednesday, GM alleges that those bribes helped Fiat Chrysler win an advantageous labor deal and ultimately cost GM billions of dollars. The dispute between the two Detroit automakers grew out of a federal probe into corruption at the United Auto Workers, which has netted convictions of several officials and led its most recent president to step down late Wednesday. GM’s case -- which doesn’t target the UAW -- cites events dating back to 2009, when both it and Fiat Chrysler’s predecessor company, Chrysler LLC, were emerging from bankruptcy.

Here’s an abbreviated and annotated timeline:

July 2009:

Fiat Chrysler officials start funneling money from a company-funded UAW training center to union officials, just three months after Chrysler LLC filed for bankruptcy and one month after its assets were purchased by Fiat SpA.

Also check these Vehicles

Find more Cars
Force Motors Gurkha (HT Auto photo)
₹ 13.59 Lakhs* **Ex-showroom price
Add to compare
Check latest offers
Mean Metal Motors Azani (HT Auto photo)
₹ 88 - 90 Lakhs* *Expected Price
View Details
Revolt Motors Rv400 (HT Auto photo)
₹ 1.40 - 1.60 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Velev Motors Vio (HT Auto photo)
₹52,000**Ex-showroom price
Add to compare
Tork Motors Kratos (HT Auto photo)
₹ 1.22 - 1.68 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
White Carbon Motors O3 (HT Auto photo)
₹55,900**Ex-showroom price
Add to compare

April 29, 2015:

Former Fiat Chrysler Chief Executive Officer Sergio Marchionne outlines his plan for reducing industry production capacity and boosting shareholder returns in a presentation entitled “Confessions of a Capital Junkie," part of a public campaign he started months before to push for consolidation.

June 9, 2015:

GM CEO Mary Barra publicly rebuffs Marchionne’s attempt to cajole GM into a merger, which he had formally requested in the spring of 2015 -- and which GM claims he sought as early as Oct. 2012.

July 20, 2015:

Fiat Chrysler and the UAW kick off negotiations for a new four-year contract, resulting in an October deal with significant pay raises for union workers and which sets a pattern for separate labor agreements with GM and Ford Motor Co.

July 26, 2017:

U.S. federal prosecutors indict Fiat Chrysler’s former vice president in charge of labor negotiations, Al Iacobelli, and the widow of a deceased UAW executive who headed the union’s Fiat Chrysler department. The government also announces charges against another Fiat Chrysler official, Jerome Durden, who becomes the first person implicated in the scandal to plead guilty less than a month later.

Jan. 22, 2018:

Iacobelli, the highest-ranking Fiat Chrysler executive implicated by prosecutors, pleads guilty to violating the Labor Management Relations Act, among other charges, and is sentenced to more than five years in prison in August.

July 25, 2018:

Fiat Chrysler CEO Marchionne’s death is announced following complications from a shoulder operation.

Aug. 30, 2019:

Federal agents raid the homes of then UAW President Gary Jones and his predecessor, Dennis Williams.

Oct. 25, 2019:

UAW ratifies a new four-year contract deal with GM, ending a nearly six-week strike and concluding negotiations that began in July.

Nov. 20, 2019:

GM files racketeering suit against Fiat Chrysler, alleging the rival’s bribery scheme cost it billions of dollars from tainted labor contracts. UAW chief Jones, who took an indefinite leave of absence on Nov. 2, resigns after union takes steps to oust him.

To contact the reporter on this story: Chester Dawson in Southfield at cdawson54@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, David Welch

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

First Published Date: 21 Nov 2019, 10:59 AM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
73% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 239 Rs. 899
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.