General Motors (GM) may first and foremost be seen as an American car company, but early on in the car company’s history, it entered into an agreement to take control of Germany’s Opel in 1929, lasting an unprecedented 88 years. However, after a continuous decline in sales, GM announced a deal with France’s PSA Group to relinquish control of Opel and Vauxhall Motors for 2.2 billion euros ($2.3 billion), effectively marking GM’s exit from Europe.
The sale comes after increased pressure from investors who want to see the company focus on profitability instead of chasing Germany’s VW for global market share. Opel has failed to become profitable for 16 consecutive years, leading GM to finally cut the cord.
With the final terms laid out, the sale to PSA is expected to be completed by the end of this year.