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.
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."
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 percent share company in Europe. The financial results have been unacceptable."
A GM spokesperson said: "The Chevrolet brand 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. Parts will be maintained for ten years. Servicing will be in place for the next two years, and during that time we will make arrangements for Vauxhall and Opel dealers to take on servicing responsibilities for Chevrolet."
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 percent of its Chevrolets in Korea, retask its production facilities to more profitable markets like Russia.
New Chevrolets will continue to be sold in Europe for the next two years in order to utilise remaining stock and production, after which GM will focus solely on Opel and Vauxhall.