Groupe PSA, the French company that owns Peugeot and Citroen, has struck a 2.2 billion euro deal to buy General Motors’ European unit, including Opel and Vauxhall.

GM Europe has not made a profit since 1999 and the deal has raised fears about job losses at Vauxhall.

With GM’s Opel and Vauxhall operations, PSA would become the second largest automaker in Europe, behind Volkswagen.

Peugeot Citroen has set out plans to cut 8,000 jobs and close an assembly plant outside Paris as losses mount

Carlos Tavares, chairman of PSA’s managing board, said in statement: “We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.”

PSA said it would return Opel and its Vauxhall brand to profit, and expected to make savings of $2.2 billion per year by 2026, with most of the cuts made by 2020.

Next year PSA will decide where it will make the next generation of Astra cars currently made in the UK against the background of Brexit negotiations.