General Motors has said that it won't allow ongoing financial hardships to put a damper on the Chevy Volt development program, but a recent announcement that its plant in Flint, Michigan may be delayed could have cause for some worry. The Flint plant is where the 1.4L four-cylinder engine that will be used as a range-extender in the Volt is scheduled to be built. This plant is also expected to assemble powerplants for the upcoming Chevy Cruze that will replace the aging Cobalt when it goes into production at GM's Lordstown, OH plant in April 2010 as a 2011 model.
Because the Volt and Cruze are still so far away, this plant's delay isn't likely to have any effect on either car's proposed production dates. Regardless, expect to hear plenty of doom and gloom-style news over the next few days regarding the future of The General's new fuel-saving hotness on account of this plant's delay. The reality, though, is that there won't be a Volt program to worry about if GM is unable to keep its doors.
Giveth, and taketh away, isn't that always the story? On the taketh away side, GM has recently lost a serious chunk of change. On the giveth side, The General received a $56 milion package of tax credits and grants to keep an SUV factory open in Ohio. It has also just received another package of tax credits from the city of Flint, Michigan to aid its investment in a factory that will build engines for the new Volt and Chevy Cruze. Approved over some constituent disapproval by the Flint City Council, getting GM to build the factory there will keep 300 jobs in the city. GM is now looking to the state of Michigan for more tax incentives.
Our first thought was "Boy, retirement plans sure ain't what they used to be." Reality, of course, is more banal, it's just UAW Local 651 going all nostalgic while demolition of the Flint East plant continues. The plant's last occupant was Delphi, but the plant has a history nearly as long as the automotive industry itself. With that much provenance, Local 651 is most likely right in assuming that some former workers might want to have a brick from the plant to put on their mantle. Michiganders looking for a memento will need to sign up on next Tuesday so the union can get a bead on how many people are interested. We'd like to sign up for the return of industry and good blue collar jobs, nevermind the old bricks.
