Vauxhall and its European sister brand Opel could be bought by the company which owns Peugeot, Citroen and DS Automobiles.
According to reports from Reuters and the Deutsche Press Agency, Vauxhall’s parent company General Motors is in the advanced stages of negotiations to sell the British manufacturer to the PSA Group.
In recent years, GM sought to increase its co-operation with Peugeot and Citroen, in an effort to cut manufacturing costs and improve the profitability of both Opel and Vauxhall.
As a result, several SUV and MPV models made by the manufacturer shares components and production facilities with PSA Group manufacturers, but the buyout is still big news.
In a statement, PSA said: “PSA Group confirms that, together with General Motors, it is exploring numerous strategic initiatives aiming at improving its profitability and operational efficiency, including a potential acquisition of Opel.”
It added that there could be “no assurance” that an agreement will be reached, but other reports suggest that the deal is reaching its final stages.
If a deal is made, the PSA Group would officially become the second largest automotive conglomerate in Europe behind Volkswagen AG, with a 16 per cent stronghold on the European market.
The deal would also allow the French group better access to the electric car technology developed on cars like the Vauxhall Ampera and upcoming Ampera-E, while allowing GM to quietly exit the UK market.
General Motors has struggled in Britain in the past, having cut brands like Chrysler and Chevrolet from UK dealerships, and is also reportedly concerned over increased UK production costs post-Brexit.