In the past the United States’ Rico Act has been used to prosecute gangsters such as the Gambino and Lucchese families, but news at the LA show is that General Motors (GM) has filed a Rico lawsuit against Fiat Chrysler Automobiles (FCA) and several of its executives alleging a “multi-year pattern of corruption” in its dealings with the car-making trade union, the UAW.
The Racketeering Influenced and Corrupt Organizations Act of 1970 also bought down rogue trader Michael Milken in 1989 and the GM lawsuit accuses former Fiat boss Sergio Marchionne, who died last year, of being a central figure in “conceiving, executing and sponsoring the fraudulent activity”. Several other FCA employees are also named.
The lawsuit relates to automotive pay negotiations between 2011 and 2015 and alleges that bribes were made to union officials, which had the result of giving FCA a big advantage in their labour costs.
According to the GM Authority website, no UAW officials are named.