Why GM Selling Opel Could Be Bad News For Fiat

But Clark said he had held constructive talks with GM on Thursday.

New passenger auto registrations at PSA, including the Peugeot, Citroen and DS brands in the European Union and the European Free Trade Association rose 6.5 percent in January, compared with 5.3 percent for GM's Opel and Vauxhall brands, the Association of European Carmakers (ACEA) said on Thursday.

PSA and GM have declined to say what cuts they would make to jobs, plants, production capacity or research and development under the deal being discussed.

It comes after Mr Clark spoke to GM president Dan Ammann on Tuesday to raise concerns about a potential acquisition of Opel Vauxhall.

Opel employs about 35,600 people across Europe, including 18,250 in Germany.

The Vauxhall factories in Luton in Bedfordshire and Ellesmere Port in Cheshire employ 4,500 staff. Thousands more jobs rely on its United Kingdom supply chain.

Labor Minister Andrea Nahles said that Opel's headquarters must remain in Ruesselsheim, Germany, the dpa news agency reported.

The UK business secretary has said he has been given reassurance about the future of General Motors' Vauxhall production operations in Britain, following a meeting with the U.S. carmaker's chairman.

PSA chief executive Carlos Tavares is also looking to meet with the German chancellor Angela Merkel and union representatives this week as he looks to push the deal through, according to the Financial Times.

This would see GM exit the United Kingdom and Europe, while transforming PSA Group into Europe's second-largest vehicle maker with a 16% share of the market.

McCluskey has publicly appealed to Theresa May's government to protect British jobs, and told Clark in a meeting on Wednesday that the union would not accept any job losses or factory closures.

The deal proposal emerged past year from regular talks between GM and PSA, according to two people with knowledge of the matter. That earlier effort foundered before PSA's 2013-14 near-bankruptcy and bailout, in which the French state and China's Dongfeng took 14 percent stakes to match the Peugeot family's diluted holding. He also wants to meet Opel's German stakeholders, a PSA spokesman said, adding no date has been fixed.

  • Zachary Reyes