The federal racketeering lawsuit filed by General Motors on Wednesday, accusing Fiat Chrysler Automobiles of playing a role in a years-long union bribery scandal, threatens the legacy of an iconic auto industry leader — and a mega-merger.
“We are not worried,” Elkann said Thursday at an investor event in Turin, Italy, for Exor, the holding company of Fiat’s founding Agnelli family. “I’m disappointed over the false accusations against Marchionne, who can’t defend himself.” Marchionne, 66, died last year. The lawsuit “comes at a very delicate time for FCA,” which also is negotiating a new labor contract, Marco Opipari, an analyst with Fidentiis Equities, wrote in a note. Fiat said Thursday that talks with Peugeot are progressing well, and Elkann added that he expects a binding memorandum of understanding by year-end. Paris-based PSA declined to comment.