General Motors (GM) will invest approximately $370 million to build a new plant in Flint, Michigan, that will produce engines for the company's Chevrolet Cruze and Volt automobiles. Company officials say that $349 million will be earmarked for the construction of a 552,000-square-foot plant, along with machinery, equipment, and special tooling, with the additional $21 million going toward additional vendor tooling to support the new operation. Two engines will be produced at the new facility: a 1.4-liter turbo engine for the Cruze, which is scheduled to debut next year, and a 1.4-liter naturally aspirated engine for the Volt, an electric vehicle that is planned for November 2010. Construction is slated to begin immediately, with completion expected in 2010. No new jobs will be created with the project, but more than 300 hourly positions will be retained. The Flint Journal reports that state economic development agencies have approved approximately $120 million in tax incentives for five GM projects, including the new Flint operation.
All contents copyright 2020 Halcyon Business Publications, Inc.