In December, General Motors (NYSE:GM) announced that they were delaying the opening of a plant in Flint that would build engines for the Chevy Volt and Chevy Cruze, both hybrid vehicles, but they said that this would not delay the 2011 debut of the vehicles on the market. Now they’ve canceled the plant entirely.
The bad news just keeps on coming for General Motors and Flint, Michigan. It was reported late last night that construction contracts for the new $370 million engine plant that was going up in Flint have been canceled. GM actually stopped work on the project in early December…GM spokeswoman Sharon Basel told AutoblogGreen that the intention all along had been for engines for the early production runs of the Cruze and Volt to be supplied from a European facility that already builds variants of GM’s so-called “Family 0″ powertrains.
Which only makes one wonder why, if that was the plan all along, GM insisted 5 weeks ago that the delay of the plant opening was just a delay and not a cancellation.
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