After canceling the construction contracts for a new Flint, MI engine plant a month ago, General Motors has now officially canceled the whole plant. The plant was due to build new 1.4L four cylinder engines for the Chevy Cruze and Volt starting in 2010. Based on current and expected future production volumes, the company decided it had enough space in an existing plant adjacent to where the new one was to be built.
This spring, GM will begin preparation of the Flint South engine plant to accommodate tooling for the new engine line. Production of the new engines is scheduled to start in December 2010. When Cruze production begins next spring, the initial supplies of engines will come from a plant in Aspern, Austria until the domestic production is ready.
[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.