Dealers To Buy Stake In Opel/Vauxhall
Or die trying given the late unpleasantness of all things economic. But the model that Euroda, a group of 4,000 Opel/Vauxhall dealers, is attempting is innovative enough to attract some attention. Under the arrangement, member dealers would donate €150 per vehicle sold over the next three years. Euroda would use the estimated €400m to buy a minority stake in Opel/Vauxhall, which cannot secure support from European governments without better long-term viability plans. Euroda seems to be acknowledging the symbolic nature of the effort, telling Automotive News [sub] that even taking a minority stake sends “a clear signal of support” to the government, worker and customer stakeholders.
If the effort inspires greater trust in the future of Opel, it will be a win-win proposition for Euroda, figures its chairman Jaap Timmer. And as inspiring as it is to see private stakeholders take the first step in recapitalizing an ailing automaker, there’s plenty of risk. That $400 million won’t be available in its entirety until after three years, and it requires Euroda to sell nearly 900K cars per year over the same period. Meanwhile, Vauxhall is in “ terrible trouble,” and GM has announced that it is planning a sale of 50 percent of Opel to undisclosed “private investors.” Since that plan reportedly requires $1.2 billion in annual savings, it may not sit well with the German government, which emphasizes saving jobs. Lots of balls in the air on this one.
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