It is being reported that GM has clinched a deal to have Ukrainian automaker UkrAVTO to build entry-level Chevrolet cars for GM at a plant (FSO) in Poland.

The news is not official but industry sources say an announcement is imminent.

The two companies have been in talks for months about forming a joint venture to make Chevrolets in Poland, but have now decided the FSO assembly plant will make Chevrolet small cars - Aveo - under contract.

Small Chevrolet cars manufactured in Poland would help to alleviate capacity bottlenecks in Korea.  Production would likely begin in the second half of 2007 and rise to 40,000 units per annum.