GM puts a hold on Chevrolet Volt and Cruze engine factory

In an effort to conserve cash, General Motors said that it is putting the brakes on the construction if its Flint, Mich. plant. The $370 million facility plant will be responsible for making the 1.4L 4-cylinder engine that will be used for two of GM’s most important new vehicles – the Chevrolet Volt and Cruze.

However, spokeswoman Sharon Basel said that development of the Volt and Cruze will continue as scheduled. She said that GM still plans to bring both products to showrooms in 2010 and that the delay is only temporary until GM figures out its financials.

“Everything that involves heavy cash outlays obviously is under review,” Basel said Wednesday. “Our intent is to still go forward with a new facility bringing that engine to Flint, Mich.”

GM is looking for up to $18 billion in government loans in an attempt to survive the worst U.S. auto crisis in 26 years. It said that it may bot be able to pay its bills after the first-quarter without government assistance.

A turbocharged version of the 1.4L 4-cylinder engine will give the Chevrolet Cruze 100-hp allowing it to return a fuel-economy of close to 40 mpg. A non-turbocharged version of the engine will give the Volt additional power to generate enough electricity to keep running after it completes its 40 miles on battery power alone.

2011 Chevrolet Volt:

2011 Chevrolet Cruze:

Source: MSNBC