The French PSA Group, producer of Peugeot and Renault car brands, has reported that it is considering a potential acquisition of Opel, an ailing European car manufacturer, whose majority owner is the American company General Motors (GM).
PSA Group said that it was considering various strategic initiatives to the end of enhancing the current cooperation between the two companies and that the purchase of Opel was one of them.
PSA Group and GM already have several joint projects in Europe. GM has been recording losses with Opel, its most important brand in Europe, for years. The company had hoped that it would break even, but its losses in 2016 amounted to USD 257 million.
GM and PSA Group formed an alliance in 2012, but GM announced in 2013 that it was selling its stake.