Fiat Chrysler says Peugeot talks progressing

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Fiat Chrysler on Thursday said its talks with Peugeot to create the fourth-largest carmaker are going well, despite a racketeering lawsuit filed by General Motors late on Wednesday, seeking “substantial damages.”

GM filed a lawsuit against Fiat Chrysler alleging that 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.

In a letter to employees, Fiat Chrysler Chief Executive Mike Manley said: “We are astonished by this filing, both its content and its timing. We can only assume it was intended to disrupt our proposed merger with PSA.”

FCA and PSA announced plans last month to combine forces to better tackle the cost of new technologies such as electric and self-driving vehicles as well as a downturn in auto markets.

Via Reuters

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