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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

Taking a truly driverless ride in Waymo's Chrysler Pacifica

Today was a first for me: I drove in a fully autonomous vehicle on roads without anyone behind the wheel. They weren't public roads, but they did have intersections, other vehicles, pedestrian traffic, cyclists and more, and the car managed a fairly long route without any human intervention — and without any cause for concern on my part. I've done a lot of self-driving vehicle demos, including in Waymo's own previous-generation Lexus test vehicles, so I wasn't apprehensive about being ferried around in Waymo's Chrysler Pacifica minivan to begin with. But the experience still took me by surprise, in terms of just how freeing it was once it became apparent that the car was handling things all on its own, and would continue to do so safely regardless of what else was going on around it. Waymo's test track at Castle (more on that facility here) included multiple intersections with traffic lights, a roundabout, cars stopped on the shoulder, crossing foot band cycle traffic and more. Even if these were staged, they'd be hard to replicate in exact detail every time, so despite the fact that Waymo clearly had more control here than they would out in the real world, the driving experience was still impressive. In particular, one event stuck with me: A squirrel (or other small rodent, I'm no expert on the fauna of Northern California) darted out quickly in front of the car, before turning back off the road – but the vehicle perceptibly slowed in case it needed to avoid it. Barring an incredibly lifelike animatronic, this isn't something Waymo could've planned for. Regarding how it actually works, once in the vehicle and buckled up, a rider taps a button to start the ride, and then displays mounted on the backs of the front seats show a visualization of what the car's sensors see, but selectively simplified and redesigned to draw focus to things that riders find important, and to reassure them about the system's competence and ability to spot all the key variables on the road. This is essentially the same car driving riders around Chandler, in Phoenix, where the current Waymo pilot is operating. It's still essentially a stock Pacifica van, with a premium trim upgrade, but included features in that vehicle, including the many USB ports for charging located throughout, the dual screens mentioned above on the seat backs, and the rear cabin AC and climate controls all make it particularly well suited to the task of putting the rider first.

Fiat and UAW back at negotiating table over Chrysler stake

We knew there'd be no Chrysler IPO before the end of this year, but Fiat is determined to get the best run going into 2014 and is back at the poker table with the UAW. The delay was said to be Chrysler's desire to clean up a tax issue with the IRS; turns out that also bought the carmaker time to try and close a deal for the UAW's 48.5-percent stake in the company before the IPO happens.
Whereas the price Chrysler was willing to pay was once more than $1 billion under the UAW's asking price, the gap has closed to just $800 million of late. A recent valuation of the company at $10 billion - a valuation the UAW has disputed - means Fiat would be looking to pay about $4.2 billion instead of the $5 billion that the UAW seeks. But the UAW needs to hold out for the highest amount it can get because its pension obligations through the Voluntary Employee Benefit Association (VEBA) are $3.1 billion greater than the VEBA's assets, which include the Chrysler stake.
There's a clause in the agreement that Fiat can buy the VEBA shares for $6 billion, but Fiat CEO Sergio Marchionne has said that the UAW "should buy a ticket for the lottery" if they even want $5 billion. The UAW, though, has more time to wait; it's Fiat that wants access to Chrysler's $11.9-billion war chest and that would like to avoid the risk of paying the full $6 billion for the UAW share if the float really takes off. With other valuations of Chrysler as high as $19 billion, a hot IPO could make that $6 billion look like a bargain.