F&I Management & Training

Euroda, GM's European dealer body, has renewed its offer of €500m for a shareholding in the troubled US giant's European operations following the setback in negotiations between GM, the German government and prospective buyers, when the carmaker asked for a further €300m.

"In light of the need for an additional €300m in financing that has just been estimated for Opel, the European association of around 4,000 dealers has renewed its offer for dealer shareholding in a future Opel/Vauxhall corporation," said Euroda chairman Jaap Timmer.

"As mid-sized dealers we're ready to play our part in saving Opel. That is why we're once again calling upon the federal government to take our offer of € 500m seriously. This is a historic chance for the automotive industry to let dealers and manufacturers work together to take entrepreneurial responsibility in shaping the future of Opel," he said.

Earlier this month Euroda told the German government and GM that members from 25 European countries would pay €150 per vehicle sold into an investment fund for a new Opel/Vauxhall company over a three-year time period. The association estimated this investment would reach a total of up to €500m.

Also with uncertainty surrounding the future of Vauxhall's two UK plants, in Ellesemere Port and Luton, under new ownership, EU industry ministers are meeting in Brussels today to discuss GM Europe.

The meeting was called by EU nations with GM plants concerned that the German government would protect German plants at the expense of other European operations.

Meanwhile Fiat, one of the two remaining bidders for GM's European business, has said it will not attend a meeting in Berlin at which a preferred bidder for GM Europe is to be chosen.

According to a BBC report the Italian carmaker accused the German government of being "unreasonable" in asking for extra funding from it.

DATED: 02.06.09

FEED: MT