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Federal judge throws out GM's racketeering lawsuit against Fiat Chrysler

  DETROIT — A federal judge on Wednesday threw out a racketeering lawsuit General Motors had filed against smaller rival Fiat Chrysler Automobiles, saying the No. 1 U.S. automaker's alleged injuries were not caused by FCA's alleged violations. GM officials said in statement they "strongly disagree" with the order by U.S. District Court Judge Paul Borman, whom the automaker had sought to have removed from the case, and would appeal. "There is more than enough evidence from the guilty pleas of former FCA executives to conclude that the company engaged in racketeering, our complaint was timely and showed in detail how their multi-million dollar bribes caused direct harm to GM," GM said in a statement. The Detroit company added that Borman's decision "would let wrongdoers off the hook." GM filed the racketeering lawsuit against FCA last November, alleging its rival bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. GM was seeking "substantial damages" that one analyst said could have totaled at least $6 billion. FCA had called the case meritless and asked Borman to dismiss it. On Wednesday, Borman dismissed the lawsuit "with prejudice," meaning GM cannot refile the complaint. "The direct victims of defendants' alleged bribery scheme are FCA's workers," Borman wrote of FCA. "GM's high labor costs were not an injury proximately caused by FCA's bribes, and any competitive injury that GM suffered as a result of FCA's advantage in labor costs is an indirect injury." "The dismissal of GM's complaint with prejudice earlier today vindicates our position," FCA said in a statement. On Monday, the Sixth U.S. Circuit Court of Appeals denied GM's petition to remove Borman from the case, but said the two automakers' chief executives didn't have to meet to try to settle the case as Borman had ordered. In calling for that, Borman had called the lawsuit "a waste of time and resources."   Government/Legal UAW/Unions Chrysler Fiat GM

Junkyard Gem: 1993 Plymouth Sundance Duster

When Chrysler introduced the Plymouth Duster for the 1970 model year, it was a sporty-looking fastback coupe version of the Valiant, itself a twin to the Dodge Dart. The Duster looked cool, didn't cost much, and could be very quick with the right powertrain choices; it stayed in production until the Valiant got the axe in 1976. A few years later, the Duster name went onto a coupe version of the Plymouth Volare, and then the middle 1980s saw the Turismo Duster and its legendary "Cocaine Factory" television commercial. The very last use of the Plymouth Duster name took place during the 1992 through 1994 model years, when the name was applied to a factory-hot-rod version of the Sundance. That's what we've got for today's Junkyard Gem: a purple '93 found in a Denver self-service yard. Because this was the early 1990s, the Sundance Duster got a full complement of dramatic-looking decals in bright colors. Just as was the case with its Valiant, Volare, and Turismo predecessors, the underlying model name itself was downplayed on the car's badging. In fact, the only place I could find the word Sundance was on the dash and in the owner's manual. While technically hatchbacks, the Sundance and its Dodge-badged twin (the Shadow) had a three-box shape that hid frumpy hatchback lines. Sort of a trunk, sort of a hatch, like the hatchback-coupe Chevy Novas of the late 1970s. That made this car a hot hatch, and one that could keep up with the likes of the Volkswagen GTI and Geo Storm GSi. The 3.0-liter Mitsubishi 6G72 V6 engine made 141 horsepower, making this 2,727-pound member of the K-Car family very quick for its cheap sticker price of $10,498 (about $19,360 today). This one even has the five-speed manual transmission, for lots of tire-squealing, torque-steering fun. I've seen a few of these cars on race tracks, and they have no problem reeling in a same-era GTI on a road course. Of course, the 6G72 likes to blow up in spectacular fashion when abused, but you could— and should— say the same about 16-valve Volkswagen engines. The Sundance/Shadow got the axe after 1994, when the Neon appeared as a more modern replacement; that meant the end of Lee Iacocca's Chrysler-rescuing K family in North America. This car started out in Denver and will be crushed in Denver. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Bob Lutz, UAW rep commend Chrysler for not bowing to NHTSA recall pressure [w/poll]

Bob Lutz, the well-known executive with a range of automakers including both General Motors and Chrysler, says he supports Chrysler for not caving under federal pressure to issue a recall on 2.7 million Jeep vehicles. The National Highway Traffic Safety Administration is arguing that the plastic fuel tanks positioned behind the axles of certain 1993-2004 Grand Cherokee models and 2002-2007 Liberty models may become punctured in a collision and potentially catch fire, so it has called upon Chrysler to recall the vehicles. 15 deaths and 46 injuries have been attributed to the issue. For its part, Chrysler has maintained that its models "met and exceeded" all safety applicable mandates when they were manufactured, and furthermore, they argue that the government agency's own data proves that the vehicles are no more dangerous than similar SUVs produced by other automakers at the time. As a result, it is taking the unusual step of refusing to recall the vehicles.
According to The Detroit News, Lutz says Chrysler is right to push back when the government is out of line. Lutz also said that he wished he could have done the same when NHTSA urged Chrysler to issue a recall on certain minivans back when he was with the automaker 25 years ago.
Meanwhile, United Auto Workers Vice President General Holiefield also defended Chrysler by saying, "Our legendary Jeeps are crafted with pride by our dedicated UAW American workforce who work tirelessly to ensure the utmost quality of each Jeep that is produced for customers."