egmCarTech

General Motors announced today that it will not build a new factory to produce engines for the 2011 Chevrolet Volt and Chevrolet Cruze. Instead, the Detroit automaker said it will build the 1.4L 4-cylinder Family 0 engine at its existing Flint South Engine Plant.

GM said it will invest a total of $250 million to setup the Flint South plant to make the engine for the two Chevy models. Preparations for the installation of new machinery and equipment will begin this Spring. The move will save the General about $120 million over building a brand new factory.

The new engine will power the much-anticipated 2011 Chevrolet Volt plug-in hybrid after battery power is depleted. The engine will also power the 2011 Chevrolet Cruze helping it average 40 mpg on the highway.

GM said that production of the 1.4L 4-cylinder engines will begin in December 2010.

2011 Chevrolet Volt:

2011 Chevrolet Cruze:

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