The PSA Group is in talks with GM to buy the European operations of its business, including the Vauxhall and Opel brands.
The group, which owns Peugeot, Citroen and DS brands, stated: “PSA confirms that 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/Vauxhall."
PSA and GM have previously had a close alliance, working together on three projects since 2012, when GM had a 7% stake in PSA. However GM sold its share in December 2013.
Bloomberg says today, using insider insight: “PSA is considering the takeover to boost its scale, get access to Opel’s engineering, electric car technology and reap savings from joint purchasing and eventually costs cuts.
"For GM it would mark a clean exit from Europe, especially after the UK vote to leave the European Union weighed on the British pound and GM’s operations in the country."
However, PSA said that there was no guarantee that an agreement would be reached.