U.S. auto giant General Motors is selling two of its well-known auto brands to the multinational auto and motorcycle manufacturer Groupe PSA. The Washington Post reports that GM will sell its two major European brands, Opel and Vauxhall, for about $2.3 billion.
Based in France, PSA manufactures Peugeot and Citroen, among other makes, and has been expanding rapidly since 2014. The latest purchase will make it the second-largest car company in Europe, behind VW.
The report notes that GM has been struggling to turn a profit in the European market for nearly two decades.
“The sale includes 11 manufacturing facilities and one engineering center that collectively employ about 40,000 people, according to the companies. GM will incur a non-cash accounting charge of $4 billion to $4.5 billion as a result of the sale,” The Post reports.
Mary Barra, CEO of General Motors, said in a statement today that the sale will enable GM to invest in “our core automotive business and in new technologies that are enabling us to lead the future of personal mobility.”
The Post adds: “Along with other automakers, GM is pouring considerable sums of money into developing technology for self-driving cars. Last year, the company also invested $500 million in ride-hailing service Lyft and released its first long-range electric vehicle, the Chevy Bolt EV.”