DETROIT – Cash-starved General Motors has put plans on hold for a new factory to build the Chevy Volt hybrid engine in Flint.
The move is part of GM’s efforts to reduce expenses as it appeals to the White House for federal aid of at least $8 billion to stay in business for the next two months, while it rights its ship. GM decided to delay plans for a new factory to build the engine.
“Given the situation that GM is in right now, all expenditures, anything that involves capital, is under review,” said GM spokeswoman Sharon Basel. “And such as the case with the Flint engine plant.”
Basel added that GM still plans to start production of the Volt, a gas-electric car, in November of 2010. GM calls it a range-extended electric vehicle because it runs on batteries. The engine acts as a generator to recharge the batteries for rides beyond 40 miles.
Three months ago, GM announced that it would construct a new plant to manufacture the engine for use in the Volt and the Chevrolet Cruz, another highly touted fuel-efficient car.
The engine could still be manufactured at another plant in Flint, the city’s mayor said..
Separately, Chrysler said on Wednesday that it will close down production for a month in a bid to lower its expenses. It too looking for billions from the government to stay in business.
But another option is Chrysler and GM are again in merger talks, that were suspended months ago when credit markets crashed along with auto sales.
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