Ford will invest EUR94m to produce its fully redesigned entry-level Ka model in Poland.

The new Ka shares its platform with Fiat's recently-launched retro-look 500 and will be produced alongside that model in the Italian automaker's Tychny plant, in the south of the country. Production will start this year at a rate of of up to 120,000 units a year. Around 1,000 new jobs will be created, too.

Eighty percent of the components will be sourced locally from around 25 suppliers, according to local press reports.

"Contracts with Fiat were signed for the full production cycle of Ford Ka, which is 10-12 years, but most likely it will be extended, as I see no reason that production in Poland would not be a success," a source told Puls Biznesu.

Suppliers are reportedly investing EUR198m to make Ka parts.