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]
GM Confirms Engine for Chevy Volt and Cruze Will Be Built in Existing Flint, Mich. Plant
General Motors has confirmed today that it will still invest approximately $250 million to bring the 1.4-liter 4-cylinder Family 0 engine production to Flint, Mich. The engine capacity for the Chevy Volt and Cruze will be allocated to existing and available floor space in the company's Flint South engine plant located on Bristol Road.
Preparations to the Flint South plant for installation of new machinery and equipment will begin this Spring. Production of the 1.4-liter engines is targeted to begin in December 2010.
Production of Family 0 engines at Flint South will be GM's most flexible and competitive engine manufacturing lines in the world, with approximately 150 highly flexible stations that will allow production of multiple 4-cylinder engine families without retooling.
This means that GM will not invest in new floor space at this time due to current capital expenditure constraints and available floor space in existing facilities.
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