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Fiat Chrysler charged with making criminal payoffs to UAW, takes plea deal with $30m fine and oversight

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Posted at 5:25 PM, Jan 27, 2021
and last updated 2021-01-27 17:47:00-05

(WXYZ) — In the latest case of widespread corruption tied to the United Autoworkers Union, FCA has agreed to plead guilty in a new criminal case to conspiring to violate labor law, pay a $30 million fine, and agrees to 3 years of compliance monitoring.

U. S. Attorney Matthew Schneider said during a news conference in Detroit that there was a corporate culture that allowed 3 employees including former FCA Vice President Alphonse Iacobelli to pay off UAW officials for favorable treatment.

The feds say the total tab was $3.5 million in cash, lavish parties, meals, golf, and clothing and included paying off the mortgage of now-deceased former UAW Vice President General Holiefield.

The feds have gotten 15 convictions in UAW cases including 2 former International Presidents Gary Jones and Dennis Williams.

Schneider would not say if the FCA culture went to the top and former CEO Sergio Marchionni as the feds don’t charge people who have died. Marchionni died in 2018.

General Motors filed a civil racketeering lawsuit against FCA claiming the payoffs to the UAW gave FCA favorable contracts and cost GM billions. That was tossed out in court but could be filed again with this new criminal case.

The settlement between FCA and the U.S. Attorney will need approval by a judge.

FCA merged with PSA and French carmaker Peugeot to become Stellantis which was recently approved even with the cloud of corruption hanging over FCA.