PSA Group says it is exploring acquisition of GM's Opel

France's PSA Group, maker of Peugeot and Citroen cars, says it's exploring a "potential acquisition" of Opel, the money-losing European business of General Motors Co.

PSA Group said in a statement Tuesday that it was exploring "numerous strategic initiatives" that would expand the existing cooperation between the two companies, and that an acquisition of Opel was one of them. PSA Group and GM are already involved in several joint projects in Europe.

GM has endured years of losses at Opel, its main brand in Europe. It had hoped to reach break-even by now, but last year posted a loss of $257 million for the year.

GM and PSA Group formed an alliance in 2012 but in 2013 GM announced it was selling its stake.