General Motors has reportedly appealed to the federal court to overturn the order that requires the automobile company’s CEO to “resolve” an ongoing bitter feud by conducting a meeting with the head of Fiat Chrysler to settle the lawsuit. The automobile giant has also appealed to remove the US District Judge Paul Borman who called the litigation of General Motors Co.'s racketeering lawsuit “a waste of time and resources," earlier this week. The judge asked the two companies CEO to have a personal meeting for "sensible" resolution”.
Last November, GM accused Fiat Chrysler of paying the union leaders a huge sum of money to reduce labour costs. While the GM pressed charges of organized crime against Fiat Chrysler's late CEO, Sergio Marchionne, of “orchestrating a bribery conspiracy to corrupt three rounds of bargaining with the United Auto Workers in a bid to harm and take over Detroit's largest automaker” as per the lawsuit filed, the judge described it as “nuclear option”, according to reports. Borman declared in the verdict that the case could go on for years if it was allowed to move forward. In a report, GM was said to have publicly questioned Judge Borman’s work ethics in the judiciary, saying, he “can't be considered impartial”.
While the case rested in Fiat Chrysler’s favour, who had earlier called GM’s allegations as "meritless" and sought to scrap the charges, GM, on June 26, stood its ground firmer than ever holding Fiat responsible for losing "billions" of dollars from the arrangement, as per a report. With mounting challenges in conducting the hearings amid the coronavirus pandemic, the Judiciary scrutinized the merits of GM's case and the prospect of continuing the dispute further. After a detailed analysis of the case, judge Borman declared that GM CEO Mary Barra and Fiat Chrysler CEO Mike Manley needed to "meet face-to-face, in good faith, and with goodwill "to resolve the ongoing issues and accordingly update the court on the noon of July 1, 2020.
Filed in 2019, GM's bombshell lawsuit against FCA alleges corruption of funnel payments to UAW officials that included collective bargaining process on wages, observed reports. As per GM’s lawsuit telling, the 2015 merger of Italy’s Fiat with Michigan’s Chrysler led by Sergio Marchionne was a corrupt practice.