GM scraps new Volt/Cruze engine plant in Flint, will update existing plant instead
 

Filed under: Trends, Plants/Manufacturing, GM

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General Motors has been vascillating about when and where it would build engines for its upcoming Chevrolet Volt and Cruze models, and today that saga has a new twist. Last September, GM proclaimed that it would invest $370 million in a new Flint, Michigan plant to build 1.4-liter four-cylinder engines after the city announced an extensive suite of tax breaks said to be worth $56 million. Then, in mid-December, word came that GM was delaying building the plant, although it pledged to bring the Volt to market on-time, instead sourcing initial engines from overseas. Then came word late last month that GM had cancelled the plant contracts, leaving the company's powertrain plans in limbo. Now, GM is saying that it will indeed build the engines in Flint, it's just going to do so using existing facilities.

According to a new press release, GM is citing "current capital expenditure constraints and available floor space in existing facilities" as the reason for not pursuing a new facility. All is not lost, however, as GM still plans to invest around $250M to update the company's Flint South plant. Facility revitalization work will commence this spring, with production of the new engines slated to begin in December 2010. More details in the press release after the jump.

[Source: General Motors]Continue reading GM scraps new Volt/Cruze engine plant in Flint, will update existing plant instead

GM scraps new Volt/Cruze engine plant in Flint, will update existing plant instead originally appeared on Autoblog on Tue, 24 Feb 2009 16:57:00 EST. Please see our terms for use of feeds.



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