Ukravto Sets Up JV with GM, Starts Production of Chevy Aveo

Ukravto (AVTO: N/R) announced yesterday that it agreed with General Motors to create a joint venture (60% owned by Ukravto, 40% – GM, preliminarily) to produce cars in Poland, according to Ukrainian News. Production will take place at the Polish FSO plant (Fabryka Samochodow Osobowych) in Warsaw. Since the FSO plant was acquired by Ukravto-controlled AvtoZAZ in October 2005, Ukravto has spent USD 125 mln in CapEx on the plant. The new production line to produce Chevrolet Aveos at the factory was launched yesterday (total planned production in 2008 is 60 ths cars). An FSO representative said Aveos would be exported to Ukraine in 1H08 and would go on sale in Poland in the second half of next year.