As GM’s cash dwindles to the disappearance point, and we all wait for word from the Fed on when loans will be forthcoming, the Chevy Volt’s heretofore pristine production plans have now shown the first signs of crumbling.
We have heard previously that GM had chosen the 1.4L normally aspirated 4 cylinder family zero engine to act as the generator in the Chevy Volt.
We also heard those engines would be built in a newly constructed engine plant in Flint Michigan. As well that plant would be responsible for making the engine for the upcoming Chevy Cruze.
Today, sadly, GM announced it was putting construction plans for the engine plant on hold. Citing cash management concerns, GM spokesperson Sharon Basel noted “everything that involves heavy cash outlays obviously is under review.” Specifically GM has had to delay purchasing of the very expensive steel supply that would go into manufacturing the plant.
Basel hasn’t dashed our hopes completely just yet, stating “our intent is to still go forward with a new facility bringing that engine to Flint, Mich.” She notes that these expenditures have had to be delayed awaiting word from the fed, and will hopefully only be temporary until the cash situation is resolved.
She further reassures us that Cruze and Volt development plans continue on schedule and that both cars are still planned to arrive in showrooms in 2010.
No news was provided on whether the Detroit-Hamtramck plant where the Volt is to be assembled has been delayed in any fashion.
There are now less than 10 business days left in this month of December that GM said it would be out of cash by the end of without a federal loan.
It may very well be up to President Bush and Treasury Secretary Paulson to decide whether the Volt will make it in November 2010 as we’ve all been waiting for.
Thanks to Jeff L. for the tip.
This entry was posted on Wednesday, December 17th, 2008 at 12:23 pm and is filed under Financial, Generator, Production. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.