TU-TESL

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Recently, according to foreign media reports, GM accused FCA of bribing UAW officials over the years to interfere with the negotiation process and gain a competitive advantage. According to GM, Fiat's merger with the U.S. brand, as well as FCA's revival under malchone, are all based on corruption. GM also said the operations were intended to weaken GM and force it to merge with Fiat. However, such a statement is not convincing. Litigation is seen by the outside world as a prepared declaration of war. The FCA said the lawsuit was groundless and implied that any bribery was an individual act. However, it's an embarrassing defense, with three of the FCA's top executives pleading guilty to multiple charges, after federal prosecutors accused them of bribing union officials. Whether GM gets billions of dollars in compensation from rivals or not, the smooth path to recovery seems to have been undermined. This lawsuit will not only interfere with the merger of FCA and PSA group, but also affect the labor agreement being negotiated between FCA and UAW, and even involve the reputation of the late malchanet, including the relationship between future GM, FCA and UAW. GM said in the accusation that FCA provided UAW officials with luxury meals, travel and gifts, thus benefiting from labor negotiations, and that these actions go back to 2009, when Italian company Fiat "managed to win the support of the U.S. government and gain control over the operation of Chrysler, an American landmark automobile company, for free". GM believes that bribery is the strategy of former Fiat boss Marchionne. This is shocking, because for many investors, Marjorie is a hero of great wealth. However, this is not the only allegation against the late maljone, who last year was found by the securities and Exchange Commission to have cheated investors on monthly new car sales during his tenure. In addition, the U.S. has filed criminal proceedings against FCA this year, accusing it of cheating on diesel emissions between 2011 and 2017. In January, the FCA agreed to pay $800 million (5.63 billion yuan) to settle claims from states, car owners and the U.S. Department of justice. Although maljone is no longer alive and can't defend himself, the burden has fallen on Tang Weishi, President of PSA. He acquired GM's Opel / Vauxhall European subsidiary in 2017 and turned a loss into profit in a record time, which put GM in an awkward position. GM's lawsuit will be a huge test for him, and may prompt him to reconsider the terms of the merger of PSA and FCA, which is obviously more beneficial to the latter. GM's move also put pressure on the UAW to haggle with the FCA over a new labor agreement. If the union fails to reach a good agreement in these negotiations, the bribery will be taken seriously. This "tactic" could backfire for GM. In the face of technological and regulatory innovation in the automotive industry, what manufacturers need is cooperation. GM has reached a new labor agreement with UAW, and the announcement of the union scandal will not help improve the relationship between GM and its employees. GM said the timing was purely coincidental.