GM sells European brands to France’s Peugeot

PARIS (AP) — 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 was bailed out just three years ago.