General Motors is set to shut down the European arm of Chevrolet by the end of 2015.
The move will allow GM to focus its efforts on the Opel and Vauxhall brands, which have been struggling in the increasingly tough European marketplace.
Speaking to Reuters, Stephen Girsky, vice chairman of General Motors, said: "We have growing confidence in the Opel and Vauxhall brands in Europe. We are focusing our resources in mainstream Europe."
Chevrolet's current line-up includes the Aveo, Cruze and Camaro. Many of its models - including the Volt, Captiva and Trax - are also offered by Vauxhall, however, badged the Ampera, Antara and Mokka.
Reputedly the decision has been made without any influence from the company's associations with Peugeot. "This is done independent of the PSA relationship," said Girsky.
"Basically (we will) shut away the one per cent share company in Europe. The financial results have been unacceptable."
A GM spokesperson told Autocar: "The market has been in decline for a couple of years. This decision has no impact on GM's focus on Europe and it is 100 per cent behind Opel and Vauxhall.
"Customers in the UK and Europe will be looked after. Depending upon the model, we can guarantee availability of original parts for up to ten years. And together with our dealers and authorised repairers we will ensure that service will be provided indefinitely."
Many Chevrolet dealerships are also dual branded with Opel or Vauxhall, allowing them to continue serving existing customers despite the dropping of the Chevrolet brand.
The move will also help GM, which manufacturers 90 per cent of its European Chevrolets in Korea, utilise its production facilities to supply more profitable markets like Russia and Korea itself.
“We will continue to become more competitive in Korea,” said GM Korea President and CEO Sergio Rocha. “In doing so, we will position ourselves for long-term competitiveness and sustainability in the best interests of our employees, customers and stakeholders, while remaining a significant contributor to GM’s global business.”
The brand will, however, continue to offer select vehicles - like the Corvette - in Western and Eastern Europe, while maintaining a presence in Russia and the Commonwealth of Independent States.