DETROIT – General Motors on Thursday will lay out plans to build a new $380 million 1.4 liter engine plant in Flint – the smallest GM has ever made in the U.S.- to power the next generation of compact cars coming in 2010.
The Flint factory would provide engines for the Chevrolet Cruze, which will replace GM’s Chevy Cobalt compact car in 2010. The engine would also go into the Chevrolet Volt plug-in electric car, which GM hopes to build by 2010. The Volt would use the engine to recharge a battery, which would have a 40-mile range, on longer trips.
GM in June said it would build the new small-engine plant in Flint as part of sweeping plans to become a leaner auto maker less reliant on trucks. Those plans hinged on GM’s ability to secure tax rebates from state and local governments.
Those plans called for closing four North American truck plants and, eventually, more consolidation of power train and stamping plants. The company is expected to announce specifics of those plans within the next few weeks.
On Thursday, GM Chief Executive Officer Rick Wagoner is slated to attend a ceremony in Flint to announce the new factory. The plant is still contingent on tax breaks from the state, which are to be voted on this week.
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