At GM funds are dwindling as the automaker waits for the White House to approve a bailout plan to get it through the next couple months. In the meantime, the company has suspended its plans to build a $349-million small engine plant in Flint, Michigan.
The 552,000-square-foot plant was slated to produce small engines for new GM products such as the 2011 Chevrolet Volt extended range electric car and 2010 Cruze compact. Both models are highly anticipated and could play a crucial role in the automaker's future success.
GM insists that it is merely postponing project spending for the time being. It says the hold should have no effect on the product programs, and it claims that the plant can be put up quickly at the right time.
The final decision on the bailout that will provide aid to both GM and Chrysler is expected by the end of the week.
Source: Detroit Free Press