Carlos Tavares in Geneva, Switzerland March 7, 2017. REUTERS/Arnd Wiegmann

PSA Group (PEUP.PA) expects Opel to lose more money in 2017 as the French carmaker acquires the business from General Motors (GM.N), Chief Executive Carlos Tavares said on Wednesday.

“A certain number of good achievements have been made under General Motors’ leadership,” Tavares told shareholders at PSA’s annual general meeting in Paris, highlighting sales growth and reduced losses at the GM brand.

“But we must recognize that the losses are real and probably will be again in 2017.”

(Reporting by Laurence Frost and Gilles Guillaume, editing by Louise Heavens)