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Federal Court case between Fiat Chrysler Australia and Clyde Campbell has been delayed

Clyde Campbell, former chief executive of Fiat Chrysler Australia.

The biggest scandal to ever hit the Australian automotive industry is off to a stalled start.

Today's initial interlocutory hearing at the Federal Court of Australia in Melbourne has been postponed until June 16.

Fiat Chrysler Automobiles Australia - which distributes Jeep, Chrysler, Fiat and Alfa Romeo cars - has filed court documents that allege former chief executive Clyde Campbell misused more than $30 million of company funds during his term in office, from October 2010 to May 2013.

According to court documents, FCA Australia alleges Mr Campbell "breached his fiduciary duties" and also used corporate funds "directly or indirectly" to buy a yacht, a plane, and lavish overseas trips.

The statement of claim lodged to the Victorian Registry of the Federal Court of Australia also alleges Mr Campbell's successor, Veronica Johns — who joined the company in 1998 as a personal assistant to the finance director and in May 2013 became the first Australian woman to head a car company — helped pay for house renovations using corporate funds.

Ms Johns said she left FCA Australia in December 2014 for "personal reasons".

Furthermore, FCA Australia alleges cars intended to be donated to charities were in fact redirected to other people, including Ms John's husband Greg Hede.

There is no suggestion there was any wrongdoing by the celebrities who were given a car to drive while overseas.

Meanwhile, FCA Australia claims cars were arranged overseas for high profile celebrities such as Shane Warne, Elizabeth Hurley, and Harry Kewell through a third-party company Mr Campbell "appears to have an interest in".

There is no suggestion there was any wrongdoing by the celebrities who were given a car to drive while overseas.

The third-party company, called Motortrak, primarily supplies data services to car dealer networks.

Unrelated to the allegations over the celebrity cars, FCA Australia alleges the fee for Motortrak's data services increased from $488,520 annually in 2011 to $9,169,250 annually by 2015, and the cost was "substantially greater than the cost for similar web services provided by Motortrak itself and by competitors".

The FCA Australia dealer network grew from 59 outlets in 2010 to 184 today. But, even taking that growth into account, FCA Australia alleges the cost per dealer increased sixfold from $690 per dealer per month to $4100 per dealer per month.

Mr Campbell worked for Motortrak from 2008 to 2010, before he became the boss of Fiat Chrysler Australia, according to court documents and his now inactive LinkedIn page.
The high profile lawyer representing Mr Campbell, Sam Bond, has told media the allegations of misusing funds are "not only completely denied but considered scandalous" and that, in time, the allegations will be shown to be "wrong and embarrassing" for FCA Australia.

For the first time since the allegations surfaced, FCA Australia has confirmed court action was taken after a routine audit by the company's international finance experts, who visited Australia earlier this year to carry out a more thorough investigation.

"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," the statement said.

The full extent of the allegations are yet to be realised

"As such, we are seeking all relevant information he has on these matters. We will not comment further on the ongoing legal proceedings and let the statements set forth in our pleadings speak for themselves."

The full extent of the allegations are yet to be realised and News Corp Australia understands there may be further action taken against other industry executives.

The statement of claim, filed on behalf of FCA Australia by law firm Arnold Bloch Liebler, repeatedly says throughout the document "further particulars will be provided before trial", when referring to most of the allegations.

There is no defence yet from Campbell and the application that was adjourned was to potentially freeze assets which may have been in dispute.