UPDATE: Opel/Vauxhall Dealers Eye Fund To Take Stake In Co
11 März 2009 - 1:45PM
Dow Jones News
In the first sign that dealers are prepared to help bail out
General Motors Corp.'s (GM) Opel and Vauxhall brands in Europe, a
dealer association Wednesday said it had agreed in principle to
acquire a minority stake in an entity that could be separated from
GM.
Opel/Vauxhall dealer association Euroda in a statement said it
planned to raise in the region of EUR400 million or more from a
levy on car sales to fund the potential investment.
Under the proposal, dealers would contribute to the fund EUR150
from the sale of each vehicle for a period of three years. The
Euroda association represents 4,000 dealers with about 120,000
employees.
GM Europe is nearly out of cash and GM Chief Operating Officer
Frederick "Fritz" Henderson said last week the company was willing
to sell a majority stake in Opel/Vauxhall as part of an effort to
win EUR3.3 billion in aid from Germany and other European
governments.
"Obviously, this Euroda fund could acquire a minority share in
the new company only, but would at the same time give a clear
signal to all parties involved," Euroda said.
The dealers said the new entity would have to be separate from
GM, but the Detroit-based automaker should retain a minority stake
"for practical reasons, for example with regard to economy of scale
in purchasing and engineering."
Euroda said it expects to hold a final vote on setting up the
fund at it's next general meeting in Vienna May 15.
"We have full confidence in our European colleagues and their
ability to evaluate the actual situation in the best possible way,
also based on their dedication to the brand," Euroda Chairman Jaap
Timmer said.
German Chancellor Angela Merkel in a media interview published
Wednesday said that before a decision on Opel can be made, the
government will have to know the outcome of important decisions
regarding parent GM.
The government needs to know what form of independence GM can
give Opel and what will happen to Opel's patents, Merkel told daily
newspaper Bild.
Company Web site: www.gm.com
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com