REPORT: Opel/Vauxhall dealers want to help, plan to raise 500M euros
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]
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Reader Comments (Page 1 of 1)
lithdoc 2:24PM (5/16/2009)
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...
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jv2k 2:45PM (5/16/2009)
The sellers of the product DO have a say here... and that lead to things like the creation of the g3.
paul34 5:03PM (5/16/2009)
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.
elprogramer 2:39AM (5/17/2009)
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.
WilliamTell 2:49PM (5/16/2009)
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
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Andrew 12:49PM (5/17/2009)
Are you thinking about the Saturn dealers? They wanted to do the same thing, but were shot down by GM.
These two groups have nothing in common, after all Opel dealers are exclusively European and only do business with GM Europe. Saturn is dead.
Sam 3:56PM (5/16/2009)
What an excellent idea, good luck to them.
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Tony 7:24PM (5/16/2009)
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.
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Conundrum 2:39PM (5/17/2009)
Seize the factories? Wow!
I understand being against the government bailout. I don't want my tax dollars supporting private companies either. But taking private property from one to give to another whom is arbitrarily deemed more suitable? I'm glad you're (apparently) Canadian and not an American voter.