Fiat Chrysler to pay $30M fine in probe

Fiat Chrysler Automobiles NV, which merged with French rival PSA Group earlier this month to form Stellantis NV, has agreed to pay a $30 million fine to settle a federal corruption probe targeting its U.S. operations.

Fiat Chrysler pled guilty to one count of conspiracy for violating the Labor Management Relations Act, the company said in a statement. The agreement is subject to U.S. federal court approval.

The Department of Justice alleged that starting in at least 2009, millions of dollars were funneled from the Fiat Chrysler Automobiles training center in Detroit to union leaders as a way to smooth relations. Labor leaders at the United Auto Workers received credit cards and lavish gifts, including golf trips, designer clothing, furniture and jewelry, as part of a plan to keep senior officials at the United Auto Workers union “fat, dumb, and happy,” according to legal documents. Fiat Chrysler executives, including a former company labor negotiator, also took advantage of the scheme for their personal benefit.