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Last week, the Warsaw based car maker Fabryka Samochodów Osobowych (FSO) ceased to produce its only model, Chevrolet Aveo.

FSO’s Management Board said in an announcement that “under the existing contract with GM DAT for the manufacture of Chevrolet Aveo’s for 2011, an order for 5,000 cars has been delivered”.

”As a result, production of Chevrolet Aveo’s at the Żerań facility will be discontinued as of 1 March 2011. Both the Żerań facility and the companies of the FSO S.A. Group will continue to operate in accordance with their articles of association. This will include performing all the existing contracts with third parties.”

At the same time, 1.2 thousand of the 1.8 thousand people employed by FSO will be laid off. FSO’s staff numbers are expected to be reduced even further, with 200 people to stay on board. FSO’s Management Board is now in talks with vehicle manufactures in China and India over launching production in Warsaw.
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