20 Mar 09 13:14
Talks continue over GME
Discussions are continuing over the future of Vauxhall and Opel, with officials working on a plan for General Motors Europe to separate from its troubled American parent company.
Outlining the current situation, a GM spokesman told 4Car this week that the new company would effectively be 'GME by another name', with General Motors retaining a stake of less than 50% - and perhaps even as little as 20%.
Similar discussions are also underway for General Motors' operations in Asia-Pacific and other regions, taking the structure of GM DAT (formerly GM Daewoo) as a guide.
For this plan to be viable for GME, an investment of €3.3billion is needed. GME is seeking funding - in guaranteed loans - from the European Union, as well as from the individual governments in countries including the UK, Spain, Poland, Austria and other countries where it has manufacturing facilities, though its main focus is on Germany, where Opel is based.
However, the British government - and the task force headed by Lord Mandelson -is said to be backing the survival of the Vauxhall plants at Ellesmere Port and Luton. Ellesmere Port is set to start production of the new-generation Astra later this year, and the van plant at Luton is contracted in a joint venture with Renault-Nissan till 2012. The government wants to support both these operations. Vauxhall is very important to GME: 25% of GM's European sales are in the UK.
The Chevrolet brand - used in Europe on cars built in Korea by GM DAT, the former Daewoo - is to continue, with Chevrolet operating as a sales company in the UK, though the future of Saab is still uncertain. GM has been seeking buyers for the Swedish company, which has its own manufacturing plant and engineering and design facilities, but as yet no serious offers have been announced. Imports of Cadillac models to Europe may also cease.
'We are going back to a regional organisation', say representatives, and 'we plan to progress this within the next few weeks'.
