BREAKING: GM reportedly cancels construction contracts on Flint engine plant
by Sam Abuelsamid on Jan 28th 2009 at 6:46AM 
2011 Chevy Cruze and its new 1.4L Turbo engine
In yet another blow to both General Motors and the hard-hit city of Flint MI, it appears that the automaker has canceled construction contracts on its new Flint MI engine plant. Local TV station WJRT-12 reported the news late last night and we're still waiting on a comment from GM. The plant was scheduled to produce a new 1.4L four cylinder engine to be used in the Chevrolet Cruze and Volt beginning int 2010. Work on the factory had already been suspended in mid-December in an effort to cut spending.
The plant was announced last September just before the financial crisis hit in full force and even sales of small cars collapsed. GM spokeswoman Sharon Basel told the TV station that other facilities are being considered for production of the engines. An existing version of the 1.4L "Family 0" engine is already being produced overseas and if world-wide auto sales continue to lag over the next 18-24 months, those factories would likely have sufficient capacity to supply engines for both the Cruze and Volt in 2010. We'll update this story as we learn more. Thanks to Donny for the tip!
Update: We just spoke with Sharon Basel at GM. Basel told ABG that the Flint plant was never planned to be ready for Job 1 of the Cruze in spring 2010 and Volt later in the year. It was always planned for initial engine supplies to be provided from European engine plant that builds the Family 0 engines. That plan continues and the events in Flint will not affect program timing for either Cruze or Volt. The intention is still to add Family 0 production in Flint with timing being dependent on economic conditions. The contract cancellations came at a time when GM would have had to commit to spending more capital that it doesn't have right now. This allowed GM to avoid paying out more money for the plant that it was not ready to proceed with yet.
Related:
- Tech analysis of GM's new 1.4L four cylinder engine
- GM officially announces Flint MI production for Volt/Cruze engines
Gallery: GM Flint Powertrain 1.4L engine
[Source: WJRT-TV 12]
Reader Comments (Page 1 of 1)
moogy 9:36AM (1/28/2009)
Yet an other reason for GM to get it... but they fail as usual.
American cars have the mystique of being built by Americans for Americans, a heritage that is being lost to globalisation and greedy management.
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anybody 10:15AM (1/28/2009)
@ moogy:
Wouldn't it be great if us europeans were all driving only european cars, you americans were only driving american cars and the japanese were only driving japanese cars?
Surely the world would be a better place then, wouldn't it ?
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letstakeawalk 7:48PM (1/28/2009)
I wonder if Germans laugh at other Germans who drive "American" Z4s, or X-series SUVs? Or those Finnish Porsche Caymans/Boxters...
Reality is, all of the big automakers are global corporations, and people need to get over this "I'm patriotic 'cause my car was made in xxxx" crap.
GM is making smart decisions, which is what they need to do if they're going to survive.
gorr 11:14AM (1/28/2009)
It's because gm and all other car makers are following the big oil technology plan instead of the car consumer plan that want more power for less money and polution. Actual technology permit to have lots of power without polution and few cost but gm, toyota and nissan and all the rest are sticking with the old faschion natural ressources cartel for short term financial reasons like subsidies for batteries as an exemple and are letting car down guys and car guys are stopping their buying even the small limp cars like fit, cruze, yaris, aveo, focus.
The no profit of gm is making huge profit somewhere else and they want it like that but consumers are knowing that more and more and the false of gm and toyota pr is now known.
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ElectricHead 4:42PM (1/28/2009)
dude, learn to write, please.
no one understands the words coming out of your mouth.
jl 11:18AM (1/30/2009)
chris carter does.(rush hour)
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A. Duval 10:16AM (2/04/2009)
You can thank our Congress for letting other countries to tell us how to run our businesses. Congress is supposed to protect our countries economy and not let other countries tell us what to do. I believe this is in our Constitution. But, as the old saying goes, MONEY TALKS AND BULL**** WALKS. So, looks like the American Public is going to do a lot of walking and going to the drugstore for some Preparation-H. NFTA. The original reading of this was NORTH AMERICAN FINANCE TRADE AGREEMENT. Big corporations used this to borrow our monies to move there companies out of the country. No interest until they showed a profit. Now we all know that companies very rarely show a profit. They have a habit of showing them in the red, losing money. Companies seem to show a loss on paper, but they have all these tax breaks that that our Congress gives them for these so called losses. Worked for GM and seen how they can get away with there so called loss in production scheduals.
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