Chevrolet Trucks Blog

GM has finally begun the production of the Chevrolet Aveo economy car at a plant in Poland. This is the first time that a Chevrolet vehicle is being built in the European Union. In 1928, Chevrolet had a plant in Poland but was forced to close down because of the World War II.

The Chevrolet Aveo production in Poland is under a deal between GM UkrAvto, a Ukrainian company that owns the FSO plant in Warsaw.

According to a report, GM is planning to produce about 70, 000 1.2- and l.4-litre cars in Poland and by 2009, the numbers will reached up p 100, 000 cars per year.

According to a statement released by GM and UkrAvto said in a statement, the two had plans of setting up a joint company to run the FSO plant and supervise production of the Chevrolet Aveo. 60 percent of the company will be owned by UkrAvto while the rest will be owned by the South Korean unit of GM.

The production will aid in meet rising demand for the Chevrolet Aveo in the European Union. According to Wayne Brannon, head of Chevrolet Europe, there are about 79, 000 Chevrolet Aveos that are registered in the EU since the beginning of 2007. GM is expecting an additional of 40, 000 Aveos by the end of December.

The only constraint being faced by the two companies is Brussels’ production cap of 150,000 vehicles a year until 2011. This was set to put an end to the legacy of state aid helping out the car market. However, the Polish government expresses support for the FSO, stating that the aid was paid out before Poland joined the EU in 2004. Therefore, it does not breach the competition rules of the 27-country bloc.

This entry was posted on Monday, November 5th, 2007 at 9:37 pm and is filed under Chevrolet news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.