A federal judge has ordered General Motors chief executive Mary Barra and Fiat Chrysler Automobiles chief executive Mike Manley to meet and resolve the racketeering lawsuit that GM slapped FCA with late last year.
During a video hearing on Tuesday, federal district court judge in Detroit, Judge Paul Borman, said Barra and Manley need to find a resolution to the lawsuit so they can focus on the more urgent issues facing the United States as a whole.
In making the revelation, Borman cited the coronavirus pandemic and the racial tensions triggered by the death of George Floyd. He also mentioned the government’s efforts in saving GM, FCA, and Chrysler from financial ruin during the economic crisis. Barra and Manley must meet in person by July 1 and adhere to social distancing guidelines.
“Today our country needs and deserves that these now healthy, great companies to pay us back by also focusing on rescuing this country and its citizens from the plagues of COVID-19, racism and injustice, while building the best motor vehicles in the world,” Borman said.
General Motors filed the Racketeer Influenced and Corrupt Organizations (RICO) lawsuit against FCA in November 2019, just a few weeks after FCA announced a merger with PSA Group.
The lawsuit claims that FCA corrupted the contract bargaining process between GM and the United Auto Workers (UAW) union in an attempt to force a merger between the two car manufacturers. The lawsuit alleges that the late FCA chief executive Sergio Marchionne was responsible for conceiving, executing and sponsoring the wrongdoing.
Read More: GM Slaps Fiat Chrysler With RICO Lawsuit Claiming It Bribed And Corrupted Union Talks
In a statement issued in response to Judge Borman’s orders, GM spokesman Jim Cain said, “GM has a very strong RICO case and we look forward to constructive dialogue with FCA consistent with the court’s order.”
A statement from Fiat Chrysler spokeswoman Shawn Morgan issued to The Detroit Free Press said the automaker agrees with the comments of the judge.
“We agree with Judge Borman’s observation that these are extraordinary times for our country, particularly in light of the COVID-19 pandemic and the tragic death of George Floyd and the spotlight it has focused on racism and social justice,” FCA said. “Our view of GM’s lawsuit has not changed. As we have said from the date it was filed, the lawsuit is meritless and it should be withdrawn. We therefore acknowledge Judge Borman’s concerns, and look forward to meeting to discuss them and ideally put this matter behind us.”