Hood Research
Theo Broughton & Reggie Crawford

"People would do better if they knew better."

Is there a larger scandal with the UAW/Chrysler Bribery Crime?


The news articles to date on the topic of some Chrysler employees and some former UAW leaders who either gave or received bribes create more questions than what has been reported. For years the news media have reported that the UAW would target a single list of items they desired in a contract. They would then choose a target company from the once might big three (GM, Ford and Chrysler) to negotiate and possible strike and then take the resulting contract to the other two companies to implement.

Now with the information of bribery, there is no mention of whether this occurred at GM or Ford. Why would Chrysler bribe the union if they are essentially implementing the same contract? Is the contract the same? Are there hidden gems inside the three contracts that would make it more desirable for a UAW member to choose to work at a specific company?

Today there is reporting that FCA (Fiat-Chrysler) will not continue to seek a merger with Renault. This was blamed on the French government. However the penalty for FCA is potential oversight by the government. This seems a harsh remedy if just a few persons were engaged in the crime? Oversight suggests that the behavior was more involved throughout the company than the reporting suggests. It seems more likely that no other company would want to merge with another company that would then be subject to government oversight. Further, if the French government owns part of Renault, than per this situation, the French government’s ownership would become under the oversight of the US Justice Department. What shareholder would approve this deal?

Perhaps this is just the beginning of the reporting on this topic. Detroit just accepted a special bargain for FCA to build a new plant in the city. This is at a time when auto-plants are being closed. By other reports this was an expensive bargain. Is this scandal solely within the FCA company? Is Ford or GM next targets by the Justice Department? Will we find out any more information? Can we get a higher quality of reporting by the two major newspapers still left in Michigan?

See below for other similar articles on this topic.

What happened to FCA/Renault and what's next for FCA?

Original Article


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