Today GM announced it has agreed to sell its Opel and Vauxhall subsidiaries, as well as some financing operations in Europe to PSA.

The holding company for Peugeot, Citroen and DS, PSA will be taking over the automotive brands and the move increases its market share to 17 percent in Europe meaning it is now the second largest European car manufacturer.

“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said Carlos Tavares, chairman of the Managing Board of PSA. “Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”

Carlos Tavares, chairman of the Managing Board of PSA, and Mary T. Barra, GM chairman and chief executive officer.

“We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term and we look forward to our participation in the future success and strong value-creation potential of PSA through our economic interest and continued collaboration on current and exciting new projects,” GM’s chairman and chief executive officer Mary T. Barra said.

The sale also includes intellectual property licenses from GM until vehicles transition to PSA platforms. This suggests that the Opel Ampera-e, a rebadged Chevrolet Bolt EV, will be launched in Europe as planned later this year.