GM weighs selling Opel to France's PSA

Frankfurt

GENERAL Motors floated the possibility on Tuesday that it could exit the large but troubled European market by selling its chronically unprofitable Opel unit to the French maker of Peugeot and Citroen cars.

The potential deal would create Europe's second largest carmaker, challenging the market leader Volkswagen, which is vulnerable because of an emissions scandal.

For General Motors, a sale would free it from persistent losses in Europe and help fulfil pledges by its chief executive to improve overall profit margins and increase returns to shareholders.

At the same time that the company has been struggling in the European market, it has been become increasingly reliant on China and its core North American market. More losses in Europe could undercu…