Dealers aim to raise 400mn euros to buy Opel/Vauxhall stake

Opel/Vauxhall dealers plan to raise 400 million euros to buy a minority stake in the troubled General Motors-owned brands.

Euroda, which represents 4,000 Opel/Vauxhall dealers in 25 European countries, plans to establish a fund to take a stake in the brands.

Each dealer would pay 150 euros into the fund from profits on each car they sell over the next three years in return for a stake in a new Opel/Vauxhall company.

GM Europe, which runs Germany's Opel and UK-based Vauxhall, is asking European governments for help to finance a 3.3 billion euro cash shortfall. The automaker has said it is open to discussions on partnerships or equity positions.

Euroda acknowledged that its fund would only raise enough cash to finance a minority stake in the automaker but said its plan would give a clear signal of support to governments, Opel/Vauxhall workers, and -- above all -- customers.

Opel/Vauxhall dealer associations in different countries will vote on the proposal in the coming weeks and a final vote will be held at the next Euroda meeting on May 15.

Euroda Chairman Jaap Timmer said: "Opel/Vauxhall dealers have 125,000 employees and they are responsible entrepreneurs who want to preserve these jobs as well as their investments."

Last week, GM Chief Operating Officer Fritz Henderson said that GM Europe would run out of money early in the second quarter if it did not receive financial support.