GM is considering purchasing a stake in FSO, in Warsaw, to build Chevrolets, according to the Financial Times.

The plant has been controlled by Avtozaz of the Ukraine since last year and has capacity to build 350,000 cars a year. GM's plans would see production of up to 100,000 units a year in the medium term.

Avtozaz is still talking to other companies, although GM is in a strong position as the Avtozaz plant in Zaporozhye, Ukraine, already assembles Chevrolets.

GM is also still considering sub-contracting assembly to the plant, rather than taking a stake.

GM needs the capacity because GM Daewoo lacks capacity in South Korea, having seen sales grow more quickly than expected.

The newspaper reported that GM is also keen to support Avtozaz to make up for its failing relationship with Avtovaz in Russia.