GM might sell Vauxhall & Opel brands to Peugeot owners

General Motors is reportedly in talks with the PSA Group (owners of the Peugeot and Citroen brands) to sell its European business operations. If this deal is finalised, the PSA Group is expected to take over the Vauxhall and Opel brands from General Motors.

If the PSA Group does acquire GM's European business, it would become the second largest automaker in Europe with a market share of around 16.3 percent. Volkswagen AG is currently the leader of the European passenger car market with Renault in second place.

Meanwhile, the sale of the Vauxhall and Opel brands will take General Motors out of the list of top 3 automakers globally. The two brands currently account for sales of 10 lakh units every year and are a major volume pullers for the American automotive group, which is presently the third largest car manufacturer in the world after Volkswagen and Toyota.

Further details about the probable deal structure and valuation of the Vauxhall and Opel brands are not available as yet.

Source: Reuters