"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," PSA said in a statement.
It however stated that no assurance is guaranteed that a deal would be reached to take over the German marque and its UK offshoot, which has been raking in substantial losses amounting to $257-million (R3.3-billion) in 2016 alone, and a reported $15-billion (R195-billion) since 2000.
The supposed partnership would result in PSA, which owns the Peugeot, Citroën and DS marques, becoming the second biggest automotive group in Europe after Volkswagen and, according to Bloomberg, a major feather in the cap of CEO and former Nissan-Renault Senior Executive, Carlos Tavares.
"Tavares would be targeting economies of scale, more consolidation in the small-car market, access to key platforms and even new GM technologies. He’d also be looking to boost the image of PSA," Frost & Sullivan research manager, Vishwas Shankar, was quoted as saying.
PSA, who owned a seven percent stake in Opel between 2012 and 2013, had been in strong recent collaborations with models including the Crossland X / C3 Picasso / 2008 and Grandland X / 4008, all based on its PF1 platform.
Expect more details to emerge in the coming months.