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GM to build $370 million plant in Flint, Mich.

Engine production for electric Chevrolet Volt, compact car to begin in 2010

By By Tom Krisher|
Associated Press|

FLINT, MICH.: A new General Motors Corp. engine plant to be built in Flint is good news for the struggling state of Michigan, which has seen massive job losses as the auto industry has contracted under a slumping economy and high gasoline prices.

But GM's top executive says the new four-cylinder engine factory, which will build powerplants for the new rechargeable electric Chevrolet Volt and a new high-mileage compact car, also is a commitment to investing in the United States.

''It's essential that GM respond proactively and aggressively to America's demand for new, more fuel-efficient vehicles, including those with four-cylinder engines,'' CEO Rick Wagoner said during a ceremony announcing GM's $370 million investment in the new factory.

He said the plant will allow GM to double its global production of smaller-displacement engines by 2011, with more than half the increase coming in North America.

The new plant will build a 1.4-liter four-cylinder engine that will extend the range of the Volt, and a turbocharged version that will power the Chevrolet Cruze, a new compact car to be built in Lordstown.

''This will be one of the places. You will be one of the teams that help GM lead into our second century,'' Wagoner told workers and government officials gathered for the announcement.

Production at the new plant will begin in 2010, and both cars are slated to go on sale in the same year.

The location was negotiated in last year's historic contract between the United Auto Workers and GM, UAW Vice President Cal Rapson said. It came in exchange for the union agreeing to a $14 per hour wage rate for some new hires, about half the rate of current workers.

FLINT, MICH.: A new General Motors Corp. engine plant to be built in Flint is good news for the struggling state of Michigan, which has seen massive job losses as the auto industry has contracted under a slumping economy and high gasoline prices.

Get the full article here.


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