PSA Group, comprised of Peugeot, Citroen and DS, is reportedly deep in discussion with General Motors to purchase the U.S. automaker’s Opel brand, according to a news report from Reuters.
The French automaker confirmed the news Tuesday morning stating it is “exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel.” Sources have said the discussions have reached a more “advanced” stage.
General Motors and PSA previously tied up in a strategic alliance to produce Opel and PSA vehicles, as seen in the 2018 Opel Crossland X and upcoming Opel Grandland X. However, GM largely pulled out of the alliance in 2013 by selling off its stake in PSA.
Neither Opel, Peugeot or the French government were available to comment on the potential acquisition of the GM brand.
Opel has struggled to turn a profit for years and most recently felt setbacks following Britain’s vote to exit the European Union, despite launching all-new product and increasing market share.
General Motors would reportedly hold a stake in the combined entity if a deal does, in fact, come to fruition.