2nd UPDATE: European Opel Dealers Confirm Plan To Take Stake
15 May 2009 - 10:39PM
Dow Jones News
European Opel dealer association Euroda said Friday it plans to
take a stake of around 15% in General Motors Corp.'s (GM) core
European brand after the planned spin-off from its troubled parent
company, rubber-stamping a plan presented in March.
Euroda Chairman Jaap Timmer said during a telephone conference
with reporters that the dealers would expect a representation on
Opel's supervisory board if the plan goes through, adding that
talks with the company over possible further steps will be held
next week.
Timmer said the dealers will also hold talks with other
potential investors, adding that they generally would be open for a
deal with a financial investor as well.
At a gathering in Vienna, all European dealer representatives
voted in favor of the plan apart from Finland, which abstained from
the vote.
In March, Opel's dealers said they were willing to help bail out
the troubled company by raising up to EUR500 million or more from a
levy on car sales to fund the investment.
Under the proposal, dealers would contribute EUR150 to the fund
from the sale of each vehicle for a period of three years. The
Euroda association represents 4,000 dealers with about 120,000
employees.
Italian automaker Fiat SpA (F.MI) plans to integrate GM's
European, Latin American and South African operations into a global
alliance with its own auto unit and Chrysler LLC.
Austrian-Canadian auto parts supplier Magna International Inc.
(MGA) has also signaled its interest in GM Europe, but hasn't
provided further details on its plan so far.
Timmer declined to say whether he favors a deal with Fiat or
Magna, but said he assumes that Magna may be more open to the idea
of dealers taking a stake in the copany. He said the dealers have
indications on the financial investors that are interested in Opel
as well, but he declined to provide names.
Earlier Friday, the German government said talks with the U.S.
over the future of Opel including a possible trusteeship will
continue and will possibly be stepped up in coming days.
A government spokesman said Germany has told the U.S. side it is
considering taking Opel into a state-supported trusteeship to keep
it operating should GM enter bankruptcy before Opel can be
sold.
German Economics Minister Karl-Theodor zu Guttenberg said
earlier this week the government would consider the trusteeship
step, which could include bridge financing, only if the two
remaining bidders for Opel submit detailed feasible bids by May
20.
The trusteeship is aimed at allowing Opel to continue operations
and to allow time to continue negotiations with possible investors
while at the same time not putting the company or jobs at risks
during this period.
Company Web site: www.opel.com
-By Christoph Rauwald and Andrea Thomas, Dow Jones Newswires;
+49 69 29 725 512; christoph.rauwald@dowjones.com