Mexican Media Brands
Fiat Sues UAW Trust Over Chrysler Share Price
Fiat SpA has filed a lawsuit in a U.S. court against the United Auto Workers union's retiree healthcare trust.
#legal #labor
Share
Fiat SpA has filed a lawsuit in a U.S. court against the United Auto Workers union's retiree healthcare trust.
The carmaker asks the court to resolve a dispute about the price of a stake in Chrysler Group LLC that Fiat is buying from the trust. The UAW fund owns 41.5% of the American company.
Fiat, which owns 58.5% of Chrysler, has an option to buy an additional 3.3% from the trust every six months, starting in July. But the sale that month did not occur because the trust contends that Fiat's $155 million (€120 million) offer for the stock is too low, according to the lawsuit.
The company says the offering price is based on a formula spelled out in its 2009 agreement with the U.S. Dept. of the Treasury.
Fiat obtained a 20% stake in Chrysler from the Treasury Dept. in June 2009 in exchange for auto technology and management expertise. The agreement with the government has allowed Fiat to gradually increase its holding to the current level.
RELATED CONTENT
-
Apple Engineer Accused of Stealing Self-Driving-Car Secrets
For the second time in six months, a Chinese nationalist working on Apple Inc.’s Project Titan autonomous car program in California has been charged with stealing proprietary data.
-
Tesla Sued Over Fatal Crash of Car in Autopilot Mode
Tesla Inc. has been sued by the family of a California man whose Tesla Model X crossover vehicle crashed into a highway barrier last year while the car was operating in semi-autonomous Autopilot mode.
-
U.S. Justice Dept. Asks VW to Delay Diesel Cheating Report
The U.S. Dept. of Justice has asked Volkswagen AG not to release findings of an independent probe into the German carmaker's diesel emission cheating scandal.