Peugeot-Citroen confirms plans to buy Vauxhall/Opel

This acquisition means PSA Group will become the second largest carmaker in Europe, behind Volkswagen.

GM Europe has not made a profit since 1999 and the deal has raised fears about job losses at Vauxhall, with UK factories at employing about 4,500 people.

Announcing the deal, PSA chairman Carlos Tavares said: “We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround.

“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities. Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”

“We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.”