General Motors to Invest $163 Mln. for Engine Production
General Motors said it would invest $163.2 million in its operations in Flint and Bay City, Michigan and Defiance, Ohio. This investment is to support engine production for the Chevrolet Volt, Chevrolet Cruze and a new Chevrolet small car, which will be built in the United States. The company also noted that this investment will protect around 184 jobs across the three plants.
With this investment, the total new U.S. investments made by company grew to more than $3.3 billion. The company noted that the investments include $138.3 million and 135 jobs in Flint Engine operations, $12.7 million and eight jobs in Bay City components and $12.2 million and 41 jobs in Defiance castings. Flint Engine is expected to start production of 400 engines a day in early 2011 and ramp up to 800 engines a day in late 2011.
The largest car maker in the United States plans to use the investments to support increased production of the Ecotec 1.4-liter engine, which is used in the Chevrolet Cruze and a 1.4L variant used in the Chevrolet Volt. The company noted that the Ecotec 1.4L turbocharged engine for the Chevrolet Cruze is like two engines in one with higher fuel economy and the higher performance. The 1.4L engine will help the Cruze Eco to achieve a segment-leading EPA-estimated 42 highway mpg. While the 1.4L naturally aspirated engine enables range extension for Chevrolet Volt.