GM announces $370 million investment in Flint, MI to build 1.4L engines
The local and state political and union glitterati, along with top GM executives like Rick Wagoner, John Buttermore and Tom Stephens, are gathered here in Flint, MI today for the official announcement of General Motors' newest engine plant. GM is spending $370 million to build a new 552,000-square foot factory on the Flint South engine complex. The new 1.4L four cylinders will be built in turbocharged and normally aspirated forms producing 140 hp and 100 hp respectively. The former will be used in the U.S. market version of the Chevy Cruze starting in early 2010. The non-turbo variant will be connected to a generator to propel the 2011 Chevy Volt once it uses up its 40-mile battery range. In the Cruze, the the new engine is expected to produce highway fuel economy of up to 45 mpg. GM will be holding a technical briefing on the new engines shortly and we'll have a full write up later this afternoon on AutoblogGreen.
Gallery: GM Flint Powertrain 1.4L engine
[Source: General Motors]
GM Announces $370 Million Investment for New Small Engine Manufacturing in North America
New GM engines will power Chevrolet Cruze and electrify Chevy Volt New, highly flexible manufacturing facility is planned
FLINT , Mich. – General Motors Chairman and Chief Executive Officer Rick Wagoner today announced that the company will invest $370 million in the U.S. to build a new manufacturing plant for its global 4-cylinder engines in Flint, Mich. The plant will begin production in the U.S. in 2010, and will be the exclusive manufacturing facility in North America to produce the Chevrolet Volt's range extending engine.
The investment in Flint is one of several that have been announced at U.S. plants in the past 10 years, adding up to over a $9 billion total investment in Michigan and more than $42 billion in the United States. "GM, the UAW and the City of Flint have had a long- standing relationship," Wagoner said. " Based on the capability and the commitment of the men and women who will work here, the tradition and leadership from UAW Local 599, the tremendous automotive heritage that underlies this region, and the strong partnerships we enjoy with local, state, and federal governments... we are confident that Flint is exactly the right place to build our all-new powertrain plant."
"We are proud that General Motors has chosen Michigan as the best place to develop and produce the revolutionary Chevy Volt and other next-generation vehicles and components," Governor Jennifer M. Granholm said. "Our competitive business climate, outstanding workforce and aggressive strategy to diversify our economy put us in a strong position to win this project and be the state that helps GM produce the cars and trucks that will help end our nation's dependence on foreign oil."
The investment includes construction of the new 552,000 square foot plant, machinery, equipment and special tooling to support production of the new 4-cylinder engines. In addition to the $349 million facility investment, GM will invest an additional $21 million for vendor tooling to support the new Flint operations. Construction on the new facility is slated to begin immediately, with completion in 2010. The project will retain about 300 hourly jobs.
Two engines will be built at the new facility. A 1.4-liter turbo for the Chevrolet Cruze and 1.4-liter naturally aspirated engine for the Chevrolet Volt extended-range electric vehicle (E-REV), will be new members of an engine family already deployed successfully around the world, primarily in Europe. The engines will play a key role in GM's plan to double global production of small four-cylinder engines by 2011, with more than half of that increase coming from North America.
Tom Stephens, GM Executive Vice President of Global Powertrain and Global Quality spoke to the role the 1.4-liter turbo will play in the company's line-up. "The new 1.4L turbo for the Chevrolet Cruze highlights GM's global commitment to offering engines that provide outstanding fuel efficiency without compromising vehicle performance. The new 1.4L turbocharged engine has the power of a larger engine, but retains the efficiency of a small-displacement four-cylinder. And with this engine, we expect the Cruze to be a fuel economy leader in its segment when it's introduced in early 2010 . "
Within the new engine plant will be GM Powertrain's most flexible and competitive engine assembly lines in the world, with approximately 300 highly flexible stations that will allow assembly of multiple 4-cylinder engine families without retooling. The plant will be a LEED (Leadership in Energy and Environmental Design) certified facility, the nationally accepted benchmark for the design, construction and operation of high performance green buildings. And the plant will be landfill free, meaning no waste from manufacturing operations will go to landfills, but will be recycled, reused or converted to energy, proving the plant will be as environmentally sound as the products it manufactures.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
Reader Comments (Page 1 of 3)
Talisman 1:02PM (9/25/2008)
awesome
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cFoo 3:49PM (9/25/2008)
Yupe. This is totally awesome. Would love to see the LS fanboi come out and laugh at the 4-bangers now.
For years they laughed at the imports for sticking it out with the i4.
Once again, GM is playing catch up. The Japs are a few decades ahead of GM. They've finally realized the solution for solving over weight cars is not about slapping on more cylinders.
Jason 4:43PM (9/25/2008)
@cFoo
Riiiight, because one version of the engine produced here isn't going in one of the most technologically advanced and innovative cars to come from a mainstream automotive manufacturer.
Sandeep 1:07PM (9/25/2008)
Possibly noob question here, but why not retool an old factory that doesn't necessarily have future product or demand for product, instead of building a new facility? Seems like it'd be cheaper, unless supply lines complicate things
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Dude 1:13PM (9/25/2008)
It's actually almost always cheaper to build new than to renovate old.
The Other Bob 1:27PM (9/25/2008)
I think this is actually and additon to an existing engine plant, where they build the 3.6 L DOHC engines, as well as others.
As far as "building" vs. "retrofitiing", there really is little difference other than the shell of the building, because in all likelyhood, this will require a full change out of all the machinery and lines within the buidling.
Sandeep 2:43PM (9/25/2008)
True, but you would think the legacy costs of firing/hiring workers (especially UAW ones) would make remodeling a plant the path of least resistance
elprogramer 2:55PM (9/25/2008)
Because General Motors has several sites in Flint, and they're trying to consolidate their operations to cut costs (such as security, transportation, etc.).
wonkydonkydotnet 5:03PM (9/25/2008)
You may get fewer Tax advantages if you retool.
I'd think the overwhelming amount of depreciation for the CapEx part is done in an old fab.
If they make a new place, they get to claim the whole thing on their sheets, instead of just the new dies, punches, molds, presses, etc.
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Anyhoo, I hate so say anything nice about an American auto mfr., but this size engine with a compressor on it is just a GREAT idea. I Love it.
Sam Abuelsamid 7:10AM (9/26/2008)
Actually for something like an engine plant, it's often easier to build from the ground up than re-tool. Much of what happens in such a factor involves machining of blocks, heads, cranks etc. All of that equipment involves plenty of conveyors for chips and coolant in the floor. In addition, GM is going from the traditional fixed transfer lines to flexible cells. Doing this sort of retool typically involves gutting the factory to the bare walls and tearing up the floors, essentially building new from the inside.
In this case you're just left with the out shell of the orginal factory. Since GM has some space at the Flint south complex, and the building itself is one of the least expensive parts of the process, it's easier to just put a new structure and start from scratch.
As for what's currently built at Flint south it's the 4.2L inline six used in the Trailblazer and Envoy.
Torrent 1:09PM (9/25/2008)
That's great news.
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RL 1:13PM (9/25/2008)
Nice, that is a big jump, up to 1/3rd of the engines. What is the diff. of something like that, and the engines FORD wants to bring out, the EcoBoost? Are they similar? What is better?
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Roland 1:20PM (9/25/2008)
This is probably part of the 50 billion dollars the American public just lend them.
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nailz420 1:21PM (9/25/2008)
you need a 100hp engine to charge volt's batteries?
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The Other Bob 1:27PM (9/25/2008)
No, they just wanted to waste gas in a car built soley to get good gas mileage. (Read - sarcasm)
Tim 1:59PM (9/25/2008)
No, need 100hp engine to propel the car after you pass the 40 mile range. I guess they can try doing it with an lawn mower engine. Maybe you can take your obvious engineering knowledge to them. Why do people ask these stupid questions? Don't you think the engineers did their math?
SkiD666 2:26PM (9/25/2008)
2009 2.4L GM engine is rated 164 HP @ 6400 RPM
from the SAE plots it has roughly 50 to 75 HP available from 2000 to 3000 RPM
so a 2011 1.4L engine rated at 100 HP @ 6000+ RPM
would probably be putting out about 30 to 45 HP from 2000 to 3000 RPM
nailz420 2:57PM (9/25/2008)
to Tim: Volt is not driven by the gasoline engine, it is only propelled by its electrical motor. The 1.4 100 hp will be used solely to charge its batteries. According to wikipedia because it's cheaper to produce the 1.4 liter than the ligher 3 cyl 1 liter engine originally planned for the Volt.
wumpus 10:22PM (9/25/2008)
Still needs a diesel. Actually, if they do it right, the cam and to a lesser degree manifold, heads, exaust should all be tuned for ~40hp at fixed rpm (max BSHP).
Judging from the PR fluff (and the few numbers in it) tossed out of GM, this is entirely an afterthought. On the other hand, anybody can still make a similar car - and leave out most of the batteries but with a more efficient "extender". There is no reason to believe that an efficient extender is more expensive that Li-ion batteries. Had GM been less interested in hype, they could be selling a volt for a profit (if you believe the rest of the dubious story) right now.
But somehow a company deep in the red is going to be saved by a car that loses money. Party like it's 1999!
Sam Abuelsamid 8:40AM (9/26/2008)
Back in July I spoke to GM's Larry Nitz who explained why the 1.4L was chosen over the 1.0L turbo and how it will drive Volt when the battery is depleted. http://greenfuelsforecast.com/ArticleDetails.php?articleID=550