Peugeot to buy GM's Opel, creating Europe's No. 2 carmaker

General Motors Co. is selling its loss-making European car business — including Germany's Opel and British brand Vauxhall — to French automaker PSA group.

The 2.2 billion euro ($2.33 billion) deal announced Monday in Paris by GM and PSA — maker of Peugeot and Citroen cars — will realign the industry and create Europe's No. 2 automaker after Volkswagen. The combined company could make 5 million cars a year.

PSA will join with French bank BNP Paribas in the deal, which foresees taking over 12 manufacturing facilities that employee about 40,000 people.

Amid concerns about job losses, PSA CEO Carlos Tavares promised to keep existing GM commitments to workers.

The purchase marks a major turnaround for PSA, bailed out just three years ago by Chinese investors and the French state.