GM scraps plans for new engine plant
February 25, 2009 by Matt Brogan
General Motors has scrapped plans for a new engine plant that would have produced 1.4-litre, four-cylinder engines for use in the Chevrolet Volt Hybrid and Cruze vehicles.
Those engines will now be sourced from overseas until an existing plant can be modified to produce the smaller engines.
GM made the decision as part of its battle to reduce costs in order to qualify for US federal loans.
The change of plans will not affect the launch of the Volt and Cruze with GM planning to import the first engines required for these models. The plant will then begin producing these engines in December 2010.
It will cost US$250-million to re-tool the plant from its previous role as engine plant for the discontinued Chevrolet TrailBlazer and GMC Envoy, which utilised a 4.2-litre, in-line, six-cylinder engine.
The Cruze is due in showrooms in early 2010, and the Volt is scheduled to follow in November.
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*****PRIMO!*****
Why would they need a new engine plant anyway?
The one at FishermansBend [blue] can make the engines, that is running at low capacity ATM.
Cheers
F-0
Wonder if the 4 cylinder engine plant in melbourne could fill this void? Our dollar at the moment would make this feasible.
Is it any wonder GM are in so much financial trouble? Build a new factory or just modify an existing one for a fraction of the cost??
Or maybe just import it from where we already build it overseas?
As long as GM are so arrogant and USA centric they will never recover.
Another engine to be built in China? You will be able to tell if you turn in over, it will be stamped underneath.
“Another engine to be built in China?”
At the rate GM are going, they’ll soon be Chinese/Korean run anyway!
Yeah Bret, “Efficent” is GM’s middle name. Too bad “In” is its first name :)
Lazybones,
Brilliant play on words, very funny :)
Holden engine plant will be closed down real soon so it wont be used again. GM will source engines from China or Korea as they will be cheap and nasty. Holden will eventually be solely a Daewoo importer, well thay almost are now really. More GM cuts will reduce Holden to almost nothing. Commodore already needs replacing as it is already outdated and they dont have the cash to do it. If it wasnt for fleet contracts ( which dont last forever) it would be dead already. My mate at Holden says there will be be some seriously bad news coming from GM Holden very soon.
GM = GODS MISTAKE
Seems the managment is waking up at last, or are they. Given the reason “the decision as part of its battle to reduce costs in order to qualify for US federal loans” would seem to indicate they have not woken up as they would have carried on an built a new plant.
They’ll be gone before long, the management that is.
cruze in 2010? my fly on the wall says it will be alot sooner…