FRANKFURT -- A takeover of Opel, General Motors' European arm, by PSA Group would make sense from an industrial point of view, a German newspaper reported, citing comments by Opel CEO Karl-Thomas Neumann in a letter to employees.
"This is a chance to forge a European champion and start a new and successful chapter in our history after having been part of GM for 88 years," Neumann was quoted by Bild as saying in the letter.
"All parties involved understand the industrial logic behind the planned transaction: this would create the second-largest European carmaker - with a market share of nearly 17 percent," Neumann was quoted as saying.
He also said talks on Wednesday with GM CEO Marry Barra and Opel supervisory board Chairman Dan Ammann had been "very constructive." He said Opel's works council and the IG Metall union would be closely involved in the detailed assessment of the potential deal.
Neumann tweeted on Friday that a PSA-Opel merger makes sense in principle and he was doing everything to create sustainable future for Opel.
Manager Magazin reported on Friday that PSA Group CEO Carlos Tavares is keen on continuity at Opel so he planned to keep Neumann as CEO and retain the brand's management board.
The business magazine also said PSA could put into effect Neumann's plan to secure Opel's future by making it an electric car only brand. GM would be prepared to license its EV technology to PSA, the magazine said, citing sources close to the talks.
Talks on a sale of Opel and sister brand Vauxhall to PSA were confirmed by both companies on Feb. 14.
