It seems that yesterday’s RICO lawsuit against Fiat Chrysler will not derail the automaker’s planned merger with the PSA Group according to a source close to FCA.
This source, who chose to remain anonymous, also said the lawsuit will prompt neither FCA nor PSA to review their valuations for the proposed deal, reports Autonews Europe. Talks between the two car companies are said to be progressing smoothly, added an FCA spokesman.
The PSA Group meanwhile decline to comment on the GM lawsuit and how it might impact merger talks. Should PSA and FCA merge as planned, the two would create the world’s fourth-largest car company.
Related: FCA Is “Astonished” By GM’s RICO Lawsuit, Calls It A Maneuver To Disrupt PSA Merger
After the RICO news broke, FCA released a statement claiming that they are “astonished by this filing, both its content and its timing. We can only assume this was intended to disrupt our proposed merger with PSA as well as our ongoing negotiations with the UAW. We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it.”
General Motors’ RICO lawsuit against Fiat Chrysler is said to expose a long-term pattern of corruption that FCA used to “undermine the integrity of the collective bargaining process,” in turn costing GM billions of dollars.
“We will not be slowed down by this act,” said current FCA CEO Mike Manley. “Let’s keep the performance up as it has clearly got some of our competitors worried.”
