The Car and Truck Fleet and Leasing Management Magazine

GM Invests $163M for Chevrolet Volt, Cruze & Small Car Engines

November 24, 2010

DETROIT - General Motors announced a $163.2-million investment in its operations in Flint and Bay City, Mich., and Defiance, Ohio, to support engine production for the Chevrolet Volt, Chevrolet Cruze, and a new Chevrolet small car to be built in the United States.

The announcement brings the total of new U.S. investment to more than $3.3 billion, and GM has created or retained more than 8,000 jobs in 21 U.S. plants since emerging from Chapter 11 bankruptcy in July 2009.

The investments include:

  • Flint Engine Operations: $138.3 million and 135 jobs.
  • Bay City components: $12.7 million and eight jobs.
  • Defiance castings: $12.2 million and 41 jobs.

The investments will be used to support increased production of the Ecotec 1.4L engine used in the Chevrolet Cruze and a 1.4L variant used in the Chevrolet Volt. 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 newest investment increases its capacity to 1,200 a day in late 2012.

Bay City will increase connecting rod and camshaft production and Defiance will boost output of engine block and crankshaft castings.

In less than two years, GM has invested nearly $700 million and protected more than 600 jobs at the three facilities.

The Ecotec 1.4L turbocharged engine for the Chevrolet Cruze is like two engines in one with the fuel economy of a small displacement engine and the performance of a larger engine, according to GM. The 1.4L engine helps the Cruze Eco achieve a segment-leading EPA-estimated 42 highway mpg.

The 1.4L naturally aspirated engine enables range extension for the Chevrolet Volt. After the battery is depleted, the onboard engine-generator creates additional electricity to power the car for hundreds of additional miles of extended range.

Related stories:

GM to Invest $145M for Buick's Future Compact Sedan

GM Invests $23.5 Million for Electric Components in Baltimore


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