General Motors has put the brakes on construction of a $349 million plant slated to produce engines for the extended-range electric Chevy Volt and compact Chevy Cruze in Flint, Mich. by 2010. According to the Flint Journal, preliminary surveying, property security, and underground work on the site has already been done since GM unveiled plans for the plant less than three months ago.
“It’s temporarily on hold as we assess our cash situation,” GM spokesperson Sharon Basel told the Detroit Free Press today. “I don’t think it’s a surprise that we’re studying and reviewing everything given the position we’re in.” Nor would it be a surprise if GM is using the Flint plant for leverage in its emergency loan negotiations with the White House, as suggested on the GM-Volt blog today:
