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Carsales Staff25 May 2015
NEWS

Fiat Chrysler Oz sues former boss

Former Aussie chief taken to federal court by Fiat Chrysler Automobiles Australia

UPDATE 6:45pm: Fiat Chrysler New Zealand parent company Ateco Automotive has advised that former Fiat Chrysler Automobiles Australia CEO Clyde Campbell's involvement in the business has been terminated, and that it is "business as normal" for the distribution of Chrysler, Dodge, Jeep, Fiat and Alfa Romeo vehicles in New Zealand -- and the RAM trucks import plan, which remains part of Fiat Chrysler NZ business.

"Fiat Chrysler New Zealand is [a] wholly owned subsidiary of the Ateco Group. Mr Clyde Campbell no longer has any association with the company or any involvement in it," said an Ateco spokesman in a statement tonight.

"As soon as the company became aware of the accusations against Mr Campbell the relationship was terminated in a mutually agreed settlement.

"Following the changes in ownership it is entirely business as normal at Fiat Chrysler New Zealand and the RAM project, a part of the Fiat Chrysler New Zealand business, continuing as planned.

"Neither Ateco nor Fiat Chrysler New Zealand can make any comment on the accusations against Mr Campbell as these are set to appear before the courts and the accusations do not involve Ateco or Fiat Chrysler New Zealand."

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Fiat Chrysler's former Australian chief and one of the driving forces behind bringing RAM trucks Down Under, Clyde Campbell, will face accusations of fiscal wrong doings by his former employer in the Federal Court this week.

According to a report published today in The Age, Fiat Chrysler Automobiles Australia (FCAA) is accusing Campbell of “misappropriating and misusing more than $30 million” to “fund an extravagant lifestyle for his family and business associates”.

The allegations were set out in a statement of claim lodged with the Federal Court early this month. Campbell’s legal team is on record as stating Campbell will defend the accusations, telling The Age "the allegations in the statement of claim are not only completely denied but considered scandalous".

"We are confident that, in due course, the allegations will be shown to be wrong and will be embarrassing for FCA [sic],” Campbell’s attorney Sam Bond told the Melbourne newspaper.

Campbell's legal team asserted the allegations are linked to internal politicking within the Fiat Chrysler organisation.

motoring.com.au sources suggest Campbell’s involvement in Fiat Chrysler New Zealand -- an independent joint-venture established two years ago by the former FCAA CEO and Ateco Automotive owner Neville Crichton to represent FCA brands including Chrysler, Dodge, Jeep, Fiat and Alfa Romeo in New Zealand -- is also likely to be called into question as part of the fallout from the Federal Court suit.

At the time of writing it is not clear whether the deal to import and convert RAM trucks in conjunction with the Walkinshaw Group will survive the proceedings. motoring.com.au believes some key staff are already in place for the RAM enterprise.

The Age article, bylined Mark Hawthorne and Chris Vedelago, details the FCAA Statement of Claim. It alleges Campbell “acted in breach of company governance rules”.

The case is set down for an interlocutory hearing in Melbourne this week. The Federal Court glossary says interlocutory applications “may be for interim relief (such as an injunction) or in relation to a procedural step (such as discovery)”.

“Fiat Chrysler is seeking compensation and a declaration by the court that Mr Campbell had breached his fiduciary duties, acted in bad faith and improperly used his position,” The Age story states.

FCAA would not comment directly on the allegations raised in The Age story when motoring.com.au contacted the company this morning.

“During a routine audit, we discovered what at best appears to be incomplete documentation pertaining to certain transactions and vendor relationships initiated or approved by Mr Campbell during his tenure as CEO of FCA Australia. As such, we are seeking all relevant information he has on these matters,” Director, Corporate Communications, Lucy McLellan, told motoring.com.au.

“As this is currently a matter before the courts, we cannot make any further comment,” she stated.

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