GM to build Chevrolet Aveo in Poland - report

General Motors Corp is close to announcing that it will build its Chevrolet Aveo small car in Poland, according to the pre-release of an article to appear in tomorrow's Automotive News Europe.

Citing sources, the magazine said the move will help GM solve capacity problems.

The sources said GM will announce a joint venture with Ukrainian automaker UkrAVTO to build the Aveo at the 300,000 capacity FSO assembly plant just outside Warsaw.

Polish carmaker FSO would initially build around 25,000 Aveo units starting by the year end, with production expected to increase significantly within a short time.

UkrAVTO is the majority owner of the FSO Poland plant and Ukrainian auto manufacturer ZAZ.

Commenting on the report, the head of GM's works council in Europe, Klaus Franz, said this move would lead to additional capacity reductions at GM plants in Europe, and warned that it could result in transfer of some production of GM's high volume Opel/Vauxhall Corsa small cars to central Europe from Western Europe.

The Corsa is currently built in Eisenach in German and in Zaragoza in Spain.

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