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Judge refuses to reconsider GM lawsuit against Fiat Chrysler

A federal judge in Detroit said Friday that he will not reconsider his July dismissal of General Motors’ racketeering lawsuit against Fiat Chrysler Automobiles. U.S. District Judge Paul Borman wrote in an opinion that new evidence presented by GM regarding bribes and foreign bank accounts “is too speculative to warrant reopening” the case. Borman also ruled that the earlier dismissal of the case was not done in legal error. GM alleged that FCA used foreign bank accounts to pay bribes to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also alleges that money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM. GM said the payments were made so the officials would saddle GM with more than $1 billion in additional labor costs. “Even if the affidavits establish that these foreign bank accounts exist, that fact does not rise to the inference advanced by GM, that FCA was more-than-likely using the bank accounts to bribe UAW officials,” BormanÂ’s order stated. GM said Friday that it would appeal BormanÂ’s ruling to the Sixth Circuit Court of Appeals. “TodayÂ’s decision is disappointing, as the corruption in this case is proven given the many guilty pleas from the ongoing federal investigation,” GM said in a statement. “GMÂ’s suit will continue — we will not accept corruption.” FCA lawyers wrote in court documents that allegations it bribed union officials are “preposterous” and read like a script from a “third-rate spy movie.” Gettelfinger denied the allegations in a statement and said he had no foreign accounts. WilliamsÂ’ California home was raided by federal agents but he has not been charged. Iacobelli, who is awaiting sentencing in the federal corruption probe, also denied the claims. “Judge BormanÂ’s ruling this morning once again confirms what we have said from the beginning — that GMÂ’s lawsuit is meritless and its attempt to submit an amended complaint under the guise of asking the court to change its mind was nothing more than a baseless attempt to smear a competitor that is winning in the marketplace,” FCA said Friday in a statement. Related Video: Government/Legal Chrysler Fiat GM

Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

Junkyard Gem: 2006 Chrysler Sebring Touring Convertible

Quick, what was the cheapest new convertible Americans could buy in 2006? If you guessed "Chrysler PT Cruiser" ($19,890 MSRP) you're right, but the Pontiac Solstice cost just 25 additional bucks. After that came the likes of the Miata, Mustang, New Beetle, and so forth, all priced below $25,000 in their most affordable ragtop versions that year. The Chrysler Sebring was the cheapest midsize convertible in 2006, with a price starting at just $26,115 (about $39,005 in 2022 dollars), edging out the Toyota Camry Solara SE by 825 bucks. Here's one of those roomy-yet-reasonably-priced Chrysler convertibles, now absolutely used up and residing in a Colorado self-service wrecking yard. Chrysler sold Sebrings from the 1995 through 2010 model years, in three generations. The convertible version appeared early on, starting in 1996; it started out on the same platform as the now-long-forgotten "Cloud Cars" (Chrysler Cirrus, Plymouth Breeze, Dodge Stratus), then moved in 2007 to a Mitsubishi/DaimlerChrysler-developed platform that went under everything from Outlanders to Avengers. That makes today's Junkyard Gem one of the newest American members of the Cloud Car family tree, though GAZ built Sebring-derived Volga Sibers in Russia for a few more years. By the time it got to this place, it had become a total hooptie. Rattle-can paint, duct-tape trim repair, the works. Just 16 years old, but it's done. The baling-wire repair to the torn convertible top shows ingenuity on the part of a former owner. Plywood appears to be keeping the roof from collapsing. Because so many Sebrings were invisible fleet cars, it's easy to forget that a convertible even existed. In fact, the Sebring was the best-selling new convertible in America in the middle 2000s. When the 24 Hours of Lemons race series first went to Sebring International Raceway in 2014, I used my vast powers as Chief Justice of the Lemons Supreme Court to get entry fees waived for Chrysler Sebring race cars. We got two Sebrings that year, both convertibles. The base Sebrings for 2006 got the 2.4-liter straight-four out of the just-discontinued Neon, while the Touring, GTC, and Limited trim levels got this 200-horsepower DOHC V6 (originally developed for the Chrysler LH cars) displacing 2.7 liters. Early U.S.-market Sebrings could be purchased with five-speed manual transmissions, but a four-speed automatic was mandatory by the time this car was built.