General Motors is looking to concentrate its energy in its more-profitable markets by pulling out of others.
GM announced Tuesday it’s in talks to sell its Opel and Vauxhall brands to PSA Group, the parent company of French manufacturers Peugeot and Citroen. Europe isn’t a market where GM’s had much success, having not turned a profit there since 1999, according to Automotive News.
This isn’t the first time the company has explored selling its European brands. In 2009, GM had a buyer lined up, but opted not to sell, claiming its profitability across the pond had improved. Since that time, however, Vauxhall and Opel have lost GM a total of $8 billion.
“Since 2012, General Motors and PSA Group have been implementing an alliance covering, to date, three projects in Europe and generating substantial synergies for the two groups,” GM said in a statement. “Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving  profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.”
Although GM’s losses in Europe were down by two-thirds in 2016, the next chance for it to break even reportedly would be in 2018. Since announcing its discussions with PSA, GM’s stock has gone up by 5 percent, via Automotive News.
Thumbnail photo via Opel
