• May 16, 2009
While General Motors dealers here in the States are awaiting 1,100 retail store losses, Opel/Vauxhall dealers in Europe have opted to take matters into their own hands. Euroda, the Opel/Vauxhall dealer association, is raising 500 million Euros ($667 million US dollars) in exchange for a 10-20% stake in the brand, plus representation on the brand's board of directors.

The 4,000 dealers will raise the money by contributing €150 for every vehicle sold for the next three years. Dealers realize that the move will be a tough one given the fact that Opel/Vauxhall sales are down 21.8% on the year, but the alternative is far less attractive. Without a brand, the 4,000 dealers would be forced to pick up a new franchise, sell and service only used vehicles, or close altogether.

The money raised by dealers would likely come in addition to the €3.3 million GM Europe is seeking from other European governments. Canadian supplier Magna and Italian automaker Fiat are among the entities vying for a chunk of GM's European operations. A buyer is expected to be announced as soon as next week.

[Source: Automotive News subs req'd]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 6 Comments
      • 5 Years Ago
      I heard about this plan a couple of months ago but it seemed to dissipate into thin air. Looks to have been revived now. Good luck to them
      • 5 Years Ago
      Thats smart - the sellers of the product will actually have a voice in the company. Unlike here, where the bloated union first crippled these companies, and then subsequently given control of them by our socialist white house. I don't think this is America anymore...
        • 5 Years Ago
        They do - why do you think Buick and GMC are still around? Think of all the Buick/Pontiac/GMC dealers out there. If GM had done the right thing and kept only Chevy and Cadillac (in the US), then those dealers would raise even more hell then they already have.
        • 5 Years Ago
        Are you high or just stupid?

        Dealers have a huge voice in what companies make; that's why GM makes redundant and stupid vehicles, because their customers (dealers) want products their competition (other dealers; Chevrolet and Buick/Pontiac/GMC for instance) have.
      • 5 Years Ago
      I wish the Canadian government would stop giving money away to dying companies like Chrysler and GM and seize the factories and finance Frank Stronach to build a car by Canadians for Canadians.
      • 5 Years Ago
      What an excellent idea, good luck to them.