By Nick Kostov

PARIS--The chief executive of French auto maker Peugeot (UG.FR), Carlos Tavares, had a constructive 35-minute meeting with German Chancellor Angela Merkel on Tuesday to discuss the possible takeover of Germany-based rival Opel from its parent General Motors Co. (GM), according to the company.

The discussions were "fruitful," Peugeot said.

Mr. Tavares presented Ms Merkel with his rationale for the creation of a leading European auto manufacturer by bringing together the French company's Peugeot, Citroen and DS brands with the Opel brand and its U.K. counterpart Vauxhall, both owned by GM, Peugeot said.

At the meeting, Mr. Tavares committed himself to dialogue with all parties to enhance Opel's performance and protect the future of the company and its employees, a promise that comes as European politicians and union leaders have expressed fears that the proposed combination could put jobs at the unprofitable Opel and Vauxhall at risk.

Peugeot and GM confirmed last week that they were in talks on "numerous strategic initiatives," including the possible sale of Opel to Peugeot. The companies cautioned that there was no guarantee that an agreement, which would create Europe's second largest auto maker by sales behind Volkswagen AG, would be reached.

-Write to Nick Kostov at nick.kostov@wsj.com

(END) Dow Jones Newswires

February 21, 2017 10:17 ET (15:17 GMT)

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