AutoReporter

Construction contracts for GM’s new Flint, MI engine plant have been canceled, but GM tells us plans to build the new 1.4-liter four-banger powering the Chevy Volt and Cruze in Flint remain unchanged.

Despite reports to the contrary, and despite construction contracts being canceled by GM, spokesperson Sharon Basel told us via e-mail the General’s committed to building their new 1.4-liter engine for the Chevy Volt and the turbo version for the Chevy Cruze (above) in Flint:

Additionally, Basel told the Flint News GM was examining all options — including using existing buildings on site.

Our take is GM’s looking to cut every short-term cost possible as they try to buy time until a federal solution arises to the Carpocalypse. For the moment, the most pressing vehicle to bring to market is the Chevy Volt. Given the initial low volume, GM will import 1.4-liter engines…err..range extenders from their European plant. The Chevy Cruze has been pushed off a year, so the need for the Flint engine plant to be built right now doesn’t make a whole lot of sense. Thus the delay announced late last year.

However, Flint should expect without further federal funds — or a pre-packaged bankruptcy of some sort — they won’t be seeing that plant anytime soon.



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