General Motors Co. (NYSE: GM) filed a federal racketeering lawsuit yesterday against FCA (FCA US LLC and Fiat Chrysler Automobiles NV) and former FCA executives who have previously pled guilty in an ongoing federal corruption probe. The lawsuit alleges that a multi-year pattern of corruption at FCA undermined the integrity of the collective bargaining process, causing GM substantial damages. The UAW and its officials are not Defendants, however. At this point there are no credible estimates on potential requested damages but AutoInformed estimates they will be in the billions of dollars.
The 95-page complaint filed with the United States Court Eastern District of Michigan is sweeping, complex and potentially far-reaching for both companies, the UAW and organized labor, as well as the ongoing consolidation or reordering of the automobile business. It plays against the financial crisis that was the backdrop of the taxpayer bailouts of bankrupt GM and Chrysler that saw the last major regrouping of the Detroit Three – one that is by no means conclusive. (Troubled Asset Relief Program – Total Cost $32B) Continue reading














First Electric Lexus Ever Debuts in China Today
The Lexus UX 300e’s high-output motor should make for sharp acceleration. High-capacity batteries located directly underneath the floor of the cabin deliver a low center of gravity and 400 km-driving range. Combined it’s claimed with new connectivity technology, the 300e maximizes advantages of EVs while realizing driving performance and sale-ability in a popular crossover package.
The world’s largest car market with a communist government that could set the course of clean air vehicles for decades was home to the global debut the first battery electric vehicle from Lexus at the Guangzhou International Automobile Exhibition. Designed to meet the regulations of China and Europe, the world premier was a reminder – as if automakers need another one – that regulators and emerging green customers have a large say in their designs. Lexus of course is late to the amperage party, puzzling since it led the predecessor hybrid segment. Continue reading →