The rumors don't appear to be founded in truth, however.

Rumors of a Fiat Chrysler-General Motors merger have resurfaced following GM's announcement that it's trying to sell its Opel and Vauxhall divisions to France's PSA Group.

FCA CEO Sergio Marchionne has been vocal about his desire to merge with GM, but the executive backed off his positioning in 2015 after GM CEO Mary Barra made it clear that her company had no intentions of merging with FCA. However, GM's recent announcement that it might sell its European operations has rekindled rumors of an FCA merger.

As the narrative goes, GM's departure from Europe sets the stage for a strategic alliance with Fiat Chrysler, which already has a secure foothold in the European market. Although there would be less overlap between the two companies with Opel and Vauxhall out of the picture, the deal still looks unlikely to get done.

Even if GM loses Opel/Vauxhall's 1.6 million annual deliveries, company executives believe the automaker is large enough to absorb the hit. Moreover, a GM insider revealed to Bloomberg that the company is keen on using the money previously earmarked for Opel/Vauxhall for developing newer vehicles for the United States and China, as well as advanced autonomous technologies.

Although there is no reason to believe that GM has had a change of heart when it comes to a merger with FCA, expect to hear plenty of rumors to the contrary in the coming weeks and months.