General Motors CEO Mary Barra referred to the employees and told that combining GM’s European Opel and Vauxhall business with Peugeot would be beneficial for both companies.

“While there can be no assurance of any agreement, any possible transaction would enable PSA Groupe and Opel Vauxhall to leverage their complementary strengths, enhancing their competitive positions for the future in a rapidly changing European market,” Barra said in message to staff, and urged employees not to let speculation about Opel’s fate distract the car maker from carrying out its business. ‘’No additional information could be provided at this point, because we are simply not at that point in our discussions,’’ she concluded in the message which extracts was on the disposal of Reuters.

French carmaker PSA discusses deal to buy GM’s Opel

World media reported that PSA Group negotiating with General Motors about buying its European Opel division. GM and PSA already share production of SUVs and commercial vans, a relic of their last attempt to forge a broader alliance, which was unwound in 2013 with the sale of the U.S. carmaker’s stake in PSA.

For GM, selling Opel and Vauxhall, which added almost 1 million cars to its sales, could mean giving up on the global volume race in which it is currently ranked third behind Volkswagen and Toyota, with just over 10 million vehicles delivered last year. The Detroit-based group may keep a stake in the combined entity.

The confirmation of talks came after sources told Reuters earlier on Tuesday that the two companies were in advanced discussions to combine PSA with the U.S. car maker’s Opel business. In a statement, PSA warned that there could be “no certainty over the conclusion of an agreement”.

The carmaker sold 3.15 million vehicles last year. Tavares has signalled openness to a tie-up that would increase PSA’s scale and ability to meet growing investment demands in vehicle electrification, driving technology and connected services. GM has consistently struggled to make a profit at its Opel division, which includes Britain’s Vauxhall brand. It had previously discussed a sale to Canadian parts maker Magna in the aftermath of the financial crisis, before pulling the plug on the tentative deal in 2009.