General Motors, in a bid to save its rapidly-dwindling supply of cash on hand, announced today that it is delaying construction of the Flint, Michigan, factory that is to build the engines for the upcoming Chevrolet Cruze and Volt. The delay raises questions as to whether production will begin on time for the Cruze and Volt – unquestionably GM’s two most important upcoming models.
The Flint plant is to build a 1.4-liter four-cylinder engine for the Cruze and Volt. In the Volt, the engine will help extend the plug-in hybrid’s range; it provides the sole source of power for the Cruze.
GM spokesperson Sharon Basel told the Associated Press that the development of the two models will continue as scheduled – both cars are set to be in showrooms in 2010. She said that the construction delays may be temporary while the automaker consolidates its finances.
“Everything that involves heavy cash outlays obviously is under review,†Basel said today. “Our intent is to still go forward with a new facility bringing that engine to Flint.â€
“Given the situation that GM is in right now, all expenditures, anything that involves capital, is under review,” Basel told the Flint Journal. “And such is the case with the Flint engine plant.”
Basel said that GM still plans to build the engine in Flint, though city mayor Don Williamson said that the automaker might transfer production into the existing Flint Engine South facility, rather than build an all-new plant.
The Flint plant was announced just three months ago. It involved producing a new, 552,000 square-foot plant off of Van Slyke Road next to Flint Engine South, which builds GM’s inline-six and five-cylinder truck engines, as well as the automaker’s “High Feature” 3.6-liter V6.
GM hasn’t announced any changes to the Detroit-Hamtramck plant where the Volt will be assembled or the Lordstown, Ohio, facility that will build the Cruze.
