Construction of Plant to Build Volt and Cruze Engine Suspended ~ Hybrid Car Review
Hybrid Car Review: Construction of Plant to Build Volt and Cruze Engine Suspended

Friday, December 19, 2008

Construction of Plant to Build Volt and Cruze Engine Suspended

GM has halted production of its engine manufacturing plant in Flint, MI until it can get the cash it needs to finish the job.  The plant is slated to build the 1.4 liter engines for the Chevy Volt and Cruze.  But even so, the time line for the Volt is not being affected, yet, by the cash crisis at GM.

According to the story, GM is trying to save money by putting off the purchase of the structural steel to build the new factory. But, GM is also saying Volt production will not be delayed by any delays in the construction of the plant.  The assembly of the Volt will happen at the Detroit-Hamtramck assembly plant, while the Cruze is scheduled to be built in Lordstown, Ohio. 

According to the spokesman from GM, there is still plenty of time to build the plant and begin engine assembly and even if there wasn't the plans for the Volt will not be delayed.   The 1.4 liter engine is already being built in Australia, giving GM some options.

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Anonymous said...

Volt is the only project that has any value at GM. Suspending it makes no sense.

Unknown said...

Well, yes and no.

From an economic standpoint, the Volt is going to lose GM money for the next 7-10 years.

Reputation-wise, canceling the Volt would be a disaster given how hard they've pushed it in front of their customers, Congress and the world.

Even a delay at this point would lead GM down the path to ruin given how many times they've said this is their priority. If they had to delay the Volt, I bet everyone would just give up on them.

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