GM cancels engine factory for Volt, Cruze
 

General Motors announced last month that it was delaying construction of the Flint, Michigan factory scheduled to produce engines for the upcoming Chevrolet Cruze and Volt, but worsening economic conditions have forced the automaker to cancel the project altogether.

According to insider information, GM has cancelled all construction contracts for the Flint plan. GM failed to give an official explanation for the cancellation, but it’s quite obvious the struggling automaker just doesn’t have the cash on hand to pay for the $370 million facility.

However, the cancellation doesn’t necessarily mean the city of Flint will miss out on the engine contract. “Our commitment to the city of Flint hasn’t changed,” GM spokeswoman Sharon Basel said. “Right now we are looking at all possible options and scenarios.”

Basel hinted that GM could use an existing structure to produce the 1.4L four-cylinder earmarked for use in the Chevy Cruze and Volt. However, GM gave no time table for the project, which could put both vehicles’ scheduled launch dates in jeopardy.

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