Sergio Talked to the Feds About UAW Corruption Investigation
Apparently, Fiat Chrysler Automobiles CEO Sergio Marchionne had an extended chat with authorities at the U.S. Attorney’s Office in downtown Detroit one year before the $4.5 million corruption scandal involving the automaker’s training center was made public.
Marchionne and his lawyer participated in a private meeting in July 2016, discussing the alleged corruption between FCA executives and high-ranking members of the UAW with investigators. One year later, former Fiat Chrysler Vice President Alphons Iacobelli was indicted and accused of funneling kickbacks to UAW officials.
According to The Detroit News, there was some speculation of Marchionne’s involvement in the actual crime. But sources familiar with the event claimed he was not subpoenaed and appeared to arrive voluntarily. He has also not be charged with any wrongdoing, so we’re not raising any eyebrows or pointing fingers. For all we know, Sergio could have helped finger the culprit from the beginning.
“If a subordinate is charged with a crime … you ought to be concerned,” explained Peter Henning, a Wayne State University law professor and ex-federal prosecutor. “This doesn’t mean [Marchionne’s] done anything wrong. This is a process that is fraught with great risk so you want good counsel to guide you through it and see if you have any criminal exposure.”
As things stand, it appears as though only a handful of auto executives and UAW officials were involved. However, a federal investigation has turned its attention to both General Motors’ and Ford’s possible involvement in a similar misappropriation of training funds. Still, there’s no supporting evidence we’re aware of and all three automakers have said they’re happy to cooperate with the FBI during its investigation.
“Fiat Chrysler has to appear cooperative,” Henning continued. “No one wants to start yelling ‘Fifth Amendment.’ That sends a signal to the government that there’s at least smoke, and maybe fire.”
[Image: Fiat Chrysler Automobiles]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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I'd have to think Big Serge (or his consigliere) would be sure to have plausible deniability on a deal like this. There's probably some US-based labor relations domo that may be in for some heat though. I was never high enough in the ranks at GM to see anything like the FCA fraud, but there were plenty of stealth payoffs to the local union officials. These guys were "on the clock" for incredible numbers of hours per month, and when combined with shift premiums, weekend premiums, holiday premiums, etc took home some serious dough. Of course "on the clock" often meant hanging out at the "fitness center" or snoozing in the UAW "work center" in the plant.
Somewhere in Detroit, or maybe New Jersey: "Rocco, I gotta job fer yous." "Sure, boss, whaddaya need me ta do?" "Old Sergio is squawkin' like a parrot to the Feds. Da wop needs ta get whacked." "Gotcha, boss, Consider it done."