General Motors is considering exiting the European market by selling Opel to the French maker of Peugeot and Citroën cars, which would result in the second-largest carmaker in Europe.
Opel was a source of concern the past few years as it was a source of persistent losses, which put a heavy burden on the profitability of General Motors. Opel began to lose market share in the 1990s, which was also the last time it made a profit. The subsequent losses also influenced the ability of General Motors to invest in the more lucrative regions.
G.M. and PSA confirmed the talks, but they cautioned that “there can be no assurance that an agreement will be reached”. If the deal goes through, G.M. would be without a major presence in Europe for the first time in nearly 90 years.
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