The owner of Peugeot could be set to buy Vauxhall from American car-making giant General Motors.

French carmaker PSA – which makes Peugeot, Citreon and DS cars – is currently engaged in talks regarding the ‘potential acquisition’ of General Motors’ European Opel business, which includes Vauxhall.

PSA spokesman Bertrand Blaise confirmed the company is ‘exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel’.

However, he added that there is ‘no assurance’ that an agreement will be reached.

Vaxuhall’s manufacturing plant in Ellesmere Port employs around 2,000 people, part of a 35,000 strong workforce across the UK.

A spokesperson for PSA added that it has been working with General Motors on three projects in Europe for nearly five years.

“Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well,” they said.