GM May Sell European Car Business to PSA Group

General Motors is currently involved in discussions that could result in the sale of its Opel and Vauxhall brands, the automaker said today.

French automaker PSA Group could potentially acquire GM’s European automotive operations. PSA Group currently runs the Peugeot, Citroën, and DS car brands.

A press statement confirmed the two automakers are discussing a sale, but it also said “there can be no assurance that an agreement will be reached.” If the plan does go through, PSA could move ahead of Renault and become the second largest automaker in Europe in terms of market share. By securing 16.3 percent of the market, PSA would slot just behind Volkswagen.

GM and PSA have been working together for many years. In 2012, the automakers agreed to share platforms and co-produce certain vehicles. GM also bought a stake in PSA but sold it not long after the announcement.

Opel and Vauxhall haven’t achieved a net profit since 1999, and about six years ago, GM began revamping its European operations. Part of that restructuring involved closing down Opel factories in Belgium and Germany and taking Chevrolet off the market in Europe. Even after these changes, GM Europe failed to turn a profit last year.

This isn’t the first time GM has attempted to get rid of its European car business. GM was about to sell the operations to Canadian parts maker Magna before backing out in 2009.

Oddly enough, PSA Group said last year that it wants to return to the U.S. market within 10 years in an effort to become a more global company.

Source: GM, Reuters

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