PARIS — General Motors is selling its unprofitable European car business to the French maker of Peugeot, marking the American company’s retreat from a major market and raising concerns of job cuts in the region.

With the $2.33 billion deal announced today, GM is giving up brands — Opel in Germany and Vauxhall in Britain — that have given it a foothold in the world’s third-largest auto market since the 1920s. They have not, however, made a combined profit in 18 years despite multiple turnaround efforts.

For the once-struggling PSA Group, which makes Peugeot and Citroen cars and has just recently reshaped its own business, the acquisition will turn it into Europe’s No. 2 automaker after Volkswagen.

GM Chairman and CEO Mary Barra said it was a “win” for both sides. “This was a difficult decision for General Motors but we are united in belief that it is the right one,” she said in Paris.

Britain’s vote to leave the European Union, which caused a plunge in the pound, weighed on the decision. “Without Brexit, we would have reached the breakeven goal” at last in 2016 for the European business, Barra said.

PSA will join with French bank BNP Paribas in the purchase, which foresees taking over 12 manufacturing facilities that employ about 40,000 people, according to a joint statement by the companies.

Executives insisted that no job cuts are currently foreseen, and that PSA will respect all existing agreements with workers.

General Motors will keep its manufacturing center in Turin, Italy. GM and PSA will continue to collaborate on electric car technologies and maintain existing supply agreements on some Buick models.

The purchase marks a major turnaround for PSA, bailed out just three years ago by Chinese investors and the French state. CEO Carlos Tavares said he hopes to parlay his success to similar savings at Opel, cutting costs through scale and better use of factory capacity.

For GM, the agreement indicates that Barra decided to focus on profits over market share.

Asked whether the arrival of the Trump administration played a role in GM’s decision to sell, Barra said GM looked at “the changing landscape from a regulatory, a geopolitical and customer preference standpoint” before making a decision.

GM could redirect the money it has been spending in Europe toward new products and services, such as self-driving cars and ride-hailing services, as well as pension obligations and an ongoing share buyback program.

Western Europe is the No. 3 auto sales market, behind China and the U.S. Opel and Vauxhall last year sold just under 1.2 million vehicles, amounting to 5.6 percent of the market.