GM delays Volt engine factory

DETROIT – General Motors Corp., which is trying to conserve cash while it awaits a government bailout, has put the brakes on construction of a factory that will make engines for two of its most important new products.

The cash-strapped automaker has delayed big-ticket purchases such as buying structural steel to build the factory in Flint, Mich., about 50 miles northwest of Detroit. The plant will make 1.4-liter four-cylinder engines for the Chevrolet Cruze small car and to extend the range of the Chevrolet Volt plug-in electric car.


Spokeswoman Sharon Basel said Volt and Cruze development will continue as scheduled and the company still plans to bring them to showrooms in 2010. The construction delay, she said, may be temporary until the company figures out its cash situation.

“Everything that involves heavy cash outlays obviously is under review,” Basel said Wednesday. “Our intent is to still go forward with a new facility bringing that engine to Flint, Mich.”

AP