Fiat Chrysler to pay $30 million to settle federal corruption probe

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UAW President Rory Gamble (left) and U.S. Attorney Matthew Schneider announce a settlement agreement to end a years-long corruption investigation into the union on Dec. 14, 2020 in Detroit.

Michael Wayland / CNBC

Stellantis, formerly Fiat Chrysler, has agreed to pay $30 million as part of a plea deal to settle a criminal investigation into collusion and bribery of union officials by former executives of the company’s North American operations.

The deal, which was announced Wednesday by federal prosecutors in Detroit, ends a multiyear federal probe into Fiat Chrysler and the United Auto Workers union. Prosecutors announced a separate plea deal last month with the UAW.

It’s unclear at this time when Stellantis will pay the fine as the agreement remains subject to U.S. federal court approval.

Under terms of the deal, the company agreed to plead guilty to a single count of conspiracy to violate the Labor Management Relations Act.

The agreement also requires the company to hire an independent compliance monitor for three years. That person will oversee the dissolution of a training facility at the center of the probe, among other things, according to the company

The investigation has led to convictions of 15 people, including two past UAW presidents, three Fiat Chrysler executives and a former General Motors board member who was a union leader. Prison sentences for those involved have ranged from 60 days to 6½ years. A handful of people are still awaiting sentencing.

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