US: Flint gives GM tax breaks for Chevrolet Volt and Cruze engine plant
By: Michael Murphy, Tuesday, August 26, 2008, AutomotiveWorld.com
General Motors has received millions in tax breaks that will help the company build a new engine plant for the Chevrolet Volt, TheDetroit News reports. GM's request for tax incentives was approved on 25 August by Flint City Council. GM is also seeking additional tax incentives from the state of Michigan.
The tax incentives have been created for GM to invest US$359m in a 530,000 sq ft plant in Flint, Michigan, where workers will produce 1.4-litre turbocharged gasoline engines for the Chevrolet Cruze, and the newspaper claims, the Chevrolet Volt. The new facility, which will be built near Flint Engine South and Flint Truck, will help retain about 300 jobs. GM plans to begin production in late 2010.
GM plans to unveil the revised Volt at either the Los Angeles International Auto Show in November or the North American International Auto Show ('Detroit auto show') in January. The Volt is a plug-in hybrid which is rechargeable by plugging the vehicle into a standard 110-volt outlet. The Volt will be able to travel up to 40 miles on electric power alone and will have a gasoline engine that powers a generator to recharge the battery and keep the vehicle running when its battery pack is low on power.
The Volt could cost as much as US$40,000 because of its expensive lithium-ion batteries, although Congress is considering tax breaks for plug-in vehicles that would defray its purchase cost.
Published on Tuesday, August 26, 2008
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