Vauxhall has returned to profit for the first time in almost 20 years after being acquired by France’s Peugeot S.A. last year.

The brands made £448m in operating profits in the first half of 2018. That compares with a £196m loss in 2016, the last full-year they were owned by the US’s General Motors.

The acquisition and turnaround helped Vauxhall’s new parent report a 40% surge in revenues to €38.6bn and operating profits of €3bn, up 48%.

The €2.2bn takeover, which completed last June, sparked fears of job cuts at Vauxhall Opel’s factories in Luton and Ellesmere Port, which have 4,500 workers.

PSA chief executive Carlos Tavares said: “Opel Vauxhall teams started to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential.”

Profits at PSA’s major existing brands, Peugeot, Citroen and DS, were up 30% to €1.9bn.

Shares in PSA jumped nearly 10% in early trading.

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