General Motors has been selling the Chevrolet Aveo in the US market since shortly after they bought a controlling interest in South Korean auto-maker Daewoo a few years ago. The Aveo is GM's smallest and cheapest (as well as least expensive) car in the US market. Right now, all the Aveos are sourced from Daewoo's plant in South Korea, but GM wants to expand availability, so they have been trying to set up another plant somewhere.

In the second half of 2007, production of the Aveo will be added at plant in Warsaw, Poland that is belongs to Ukrainian partner UkrAvto. Production volumes will start at 60,000 units a year and then ramp up to 150,000 or more per year. Polish produced Aveos will be mainly for the European market allowing more of the Korean built units being exported to the US and Asian Markets. The deal with UkrAvto is not a joint-venture at this point, instead the Ukrainian company will be assembling cars under contract.

[Source: Automotive News - subscription required]


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