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Re-activateThrough all its financial troubles in the past few months, one program General Motors has not backed off on is the plug-in hybrid Chevrolet Volt. So far.
Now in the latest round of cost cutting, the company has canceled construction contracts for what was to have been a new engine factory to build the gasoline engine for the Volt, according to a report from WJRT television news in Detroit. (The engine is also scheduled to be used in the upcoming replacement for the Chevrolet Cobalt, the Cruze.) The plant was being built in the hard-hit city of Flint, Michigan.
A GM spokeswoman, Sharon Basel, said in the ABC report that the contracts have been canceled, but says GM will not delay the Volt or the Cruze. Since car sales have collapsed compared with last year, the company can meet its revised sales expectation using engines of the same design produced in Europe.
We expect the 1.4-liter turbocharged, four cylinder engine to get better fuel economy and have at least as much power as the 2.2-liter, Four in the Cobalt.
-- Eric Evarts
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