The car will be produced at GM's Bupyeong plant in Incheon, South Korea, which is owned by its Korean subsidiary Daewoo. As a result, the new Aveo will hit the Korean markets first early next year badged as a Daewoo, before being launched in other markets as a Chevrolet.

"GM Daewoo is proud to be the first member of the GM family to produce and sell GM's next-generation global small car," said GM Daewoo President and CEO Mike Arcamone. "With demand for small cars on the rise worldwide, this is great news not only for GM Daewoo and our suppliers, but for Korean consumers as well."

GM has announced plans to produce the Aveo in North America as well, with the car set to roll off the line at its Orion Assembly plant in Orion, Michigan, starting from next year. The move is expected to create some 1200 jobs in the area.

The new Aveo was officially unveiled at the Paris Motor Show recently, and Chevrolet has detailed the four petrol engines that will be made available for the new city car. There will be two 1.2-litre engines that produce 70bhp or 86bhp, a 1.4-litre with 100bhp, and a 1.6-litre engine which has 115bhp. A four-door sedan version of the Aveo is expected to be introduced early next year.