GM sues Volkswagen executives for fraud

General Motors in the United States has filed a law suit in a Detroit court against Volkswagen executives, including chairman Ferdinand Piech.

According to United States magazine Automotive News, the suit accuses the executives, which include former General Motors executive Ignacio Lopez, of racketeering, fraud, stealing trade secrets and other misdeeds,

The transatlantic tussle between Volkswagen AG and General Motors has been stewing for some time but the latest push will pressure German authorities to proceed with the criminal investigation of the charges.

GM alleges that Piech schemed for six months to persuade Lopez to defect from General Motors and bring secret plans and documents with him, according to the Automotive News report.

The U.S. civil suit seeks unspecified damages against Lopez, seven associates, Piech and three other VW executives.

VW rejected the allegations saying that the claims for damages were "without foundation".

Insiders say GM's latest push to raise the profile of the case means that GM does not consider the issue just a matter of departing employees pilfering a few minor documents.

The chairman of GM's European arm, Adam Opel AG, David Herman, said Opel and GM had waited 34 months for German authorities to finish the investigation.

However, they could delay no longer. A three-year statute of limitations expired last month.