PSA - the group behind Peugeot, Citroen and DS cars - already has dealings with Opel and is now supplying the GM brand with components.
Michelle Krebs, executive analyst for Autotrader: "Especially in light of Brexit, General Motors must do something with its European operations, which have long lost money and hold little hope for turning profitable anytime soon".
Bertrand Blaise, executive VP for corporate communications at Group PSA, is quoted by the news agency as saying, 'We are in discussions with Opel to expand upon our existing projects, ' but declined to comment further.
It would overtake Renault to become the second largest European carmaker, after Volkswagen. This potential sale is somewhat surprising given technology emanating from European operations (11% of GM '16 revenues), operational improvement in the region and potential disaggregation costs. The division has been an integral part of GM's history for almost 100 years, so untangling it won't be easy if a sale to PSA goes through.
"It may leave PSA stronger in Europe, but what this group really needs is a stronger presence outside Europe", Wells adds.
This time Rhys is a little more enthusiastic, but not much.
"GM does not benefit greatly, either. This is therefore a retreat by GM", he says.
Vauxhall UK also has headquarters in Luton. But it also takes GM out of the ranks of global vehicle makers at a point when scale is more critical than ever.
A spokesman for PSA said it has been working with GM on three projects across Europe since 2012, which have delivered "substantial synergies" for both groups.
In a statement, PSA said it was exploring the "potential acquisition" of the business but there were now "no assurances that an agreement will be reached".
2 French manufacturer that makes the Peugeot and Citroën brands, confirmed media reports Tuesday that it was exploring an acquisition of GM's European business, which makes its Opel and Vauxhall brands.