General Motors

GM sells European brands to France's Peugeot

GM sells European brands to France's Peugeot

General Motors is selling its unprofitable European car business to the French maker of Peugeot, marking the American company's retreat from a major market and raising concerns of job cuts in the region.

With the 2.2 billion euro ($2.33 billion) deal announced Monday, GM is giving up brands — Opel in Germany and Vauxhall in Britain — that have given it a foothold in the world's third-largest auto market since the 1920s. The brands, however, have lost $20 billion since last making a full-year profit in 1999.

For PSA Group, which makes Peugeot and Citroen cars, the acquisition will turn it into Europe's No. 2 automaker after Volkswagen and caps a remarkable turnaround after it...

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