PARIS - Fiat Chrysler (FCA) said on Thursday that talks with Peugeot owner PSA Group to create a $50 billion (R735bn) car-making group were going well, despite FCA being sued for "substantial damages" by General Motors late on Wednesday.
GM filed the lawsuit in the United States, alleging FCA had bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.
"Talks are progressing smoothly," an FCA spokesman said on Thursday about discussions with PSA to create the world's fourth-biggest carmaker.
Asked whether the lawsuit might lead to a review of the two companies' valuations in the proposed merger deal, a source close to FCA replied: "No."
In a letter to employees, FCA Chief Executive Mike Manley said: "We are astonished by this filing, both its content and its timing. We can only assume it was intended to disrupt our proposed merger with PSA."