Thursday, December 24, 2009
European Opel and Vauxhall Dealers Want to Buy 20% Stake from General Motors
Instead of waiting for fate to strike, Opel and Vauxhall dealers in Europe have decided to take matters into their own hands by making a proposition to buy a direct equity stake in the European automaker that has been put up for sale by General Motors. The decision was made on Friday after representatives from Opel and Vauxhall's 4,000 dealers in Europe got together in Vienna and approved a plan that could see them controlling a 10 to 20 percent stake in the carmaker.
Euroda, the Opel and Vauxhall European dealers association said that it wants to raise a capital of about €500 million or US$675 million to help GM's European division by having each dealer contribute €150 or US$200 from each car they sell over a period of three years.
"We will start talks with all potential and possible bidders, the governments and GM on Monday," Euroda Chairman Jaap Timmer told reporters. "We are thinking about a 20 percent stake, it could be more, it could be less. Of course it hurts to pay into a fund, but it will pay dividends. It will be far worse if we have no manufacturer at all," Timmer added.
As for two most prominent candidates to obtain a majority stake in the maker, the Austrian - Canadian components maker Magna and Italy's Fiat S.p.A, Timmer said, "Our preference will be clear after we have talked to them. After our talks with the parties, we will go back to the members to get final and binding approval for our plan."
Via: ANE (Sub. Req.)