Chevy Volt poised to resuscitate dying automotive town Flint, Mich.

3750058552_141789bc58Flint, Mich., the small automotive city northwest of Detroit known best for being featured in Michael Moore’s first documentary, Roger & Me, has been in dire straits for a while. When the movie came out in 1989, it was already suffering from mass unemployment. Now, 20 years later, it may have a chance to rebrand itself as a home to General Motors’ Chevy Volt — perhaps the most practical electric vehicle primed to hit the market next year.

Today, the carmaker announced that four old plants in Flint will be revamped for assembly of engines for the Volt and its other small, fuel efficient model, the Cruze, by the start of 2011. The decision could be a turning point for the city, bringing back jobs and the sheen of an automotive industry striving to reinvent itself.

When GM took its millions in bailout money earlier this year, it promised to focus on products compatible with a new, greener fuel economy. Shortly thereafter, its bankruptcy forced it to stick plans for the Flint plants in a drawer, even though they are apparently vital to the company’s survival. Now, finally capable of investing serious dollars in the project, GM has earmarked a little over $230 million for the four plants.

About $202 million of this money will be used to renovate one of the facilities to produce 1.4-liter engines. The remaining $30 million (give or take) will go to the Grand Blanc Weld Tool Center, which is working on robotic equipment designed to put together Volt car bodies at another plant. About $1.7 million has also been allocated for the Flint Metal Center, charged with producing the metal sheets for the Volt’s body panels.

Because these production lines probably won’t be up and running until the later part of next year, after the Chevy Volt’s designated launch date, the first batch of engines will be coming from a manufacturer in Austria. GM’s plan is to ramp up turnout from the Flint facilities, starting at 40 engines per day with capacity to ramp up to 800 engines per day. The ultimate goal is to assemble 10,000 models of the Volt in 2010 alone.

The car’s engine is special because, as a plug-in hybrid-electric, it needs to be able to draw power from both a lithium-ion battery and a gas tank if the charge is depleted. While still a fully gas-powered vehicle, the Cruze’s size will allow it to get a mileage of 40 miles per gallon.

chevy-volt-concept-header

The cars themselves won’t be put together in Flint, but rather in Hamtramck, Mich., another town similarly effected by the demise of big automotive business in the region. The lithium ion batteries, perhaps the most important component of the Volt, will be made by LG Chem, a Korean company, but assembled into usable battery packs in the Detroit metro area as well.

While many skeptics have accused GM of exaggerating the driving range and convenience of the Chevy Volt (pictured above), it is still expected to be the most practical plug-in hybrid-electric vehicle available next year. The car maker says the eventual price should hover somewhere between $30,000 and $40,000, making it much cheaper than Tesla Motors‘ $109,000 roadster (and even its more affordable Model S), and Fisker Automotive’s $87,000 Karma — while still remaining more similar to traditional vehicles than supposedly cheaper EVs made by Zenn Motor Company and Coda Automotive.

picture-110VentureBeat is hosting GreenBeat, the seminal executive conference on the Smart Grid, on Nov. 18-19, featuring keynotes from Nobel Prize winner Al Gore and Kleiner Perkins’ John Doerr. Register and see a preliminary agenda at GreenBeat2009.com.

Next Story: Twitter-like services find traction in the enterprise
Previous Story: Wikia expands into lyrics

Bookmark and Share

Tags: , , , ,

Photo of Camille Ricketts

About the Author, Camille Ricketts

Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.

With GreenBeat 2009, VentureBeat's all-star conference on all things Smart Grid, coming up in November, Camille will be expanding coverage of this exciting space. Stay up to date by following @greenbeat2009 on Twitter or by becoming a fan of the event on Facebook here.

  • Who will buy these cars?
    Is there a market?
    10,000 cars by GM alone.
    The cars can be running ecologically, but producing electricity is not in many cases and disposing the batteries afterward is not ecological.
  • OldAxe
    Chevy Volt: Limited preformance and short range. Cost: $40,000 230 MPG 100,000mi Fuel @ $3.00 cost $1300
    One battery change $21,000 Total $74,000 + interest = 75 cents per mile.
    Same size car with gas engine: good preformance. Range 400 mi.Cost $23,000 30 MPG 100,000mi Fuel cost $10,000
    Total: $33,000 + interest = 34 cents per mile.
    Now I ask you, Who would be willing to pay 40 cents per mile more even if the range and preformance were equal?
  • Why are you adding the cost of changing a battery? Also, $3 a gallon is not realistic for the next 5-7 years, $5 is a safer bet. Most economic models show driving an electric car to have an equivalent cost to about $1.50 a gallon to a traditional gas car.
  • Sergey
    Really?

    How about using Volt only for 20-40 miles commute 5 days a week to the office? In this case you won't spend on gas at all, just 2c per mile for the battery charge.

    $21K for the battery change? How about an option to lease the battery for, say, $100 per month?

    And what mostly is pissing me off after I spent $1.5K to replace a broken transmission on my Mercedes - there is no stupid transmission in Volt! Either quarterly oil/fluid/gasket/whatever changes.

    It's going to be simple like a bike - the battery (becoming cheaper with the technologies improvement), the electrical engine (which is as simple as one in your vacuum cleaner), the computer (when last time did your laptop brake?), and 1 liter generator that will run occasionally when you drive out of the city on the week-end.
  • But it can be. The difference now is that its a choice. In our current system it isn't
  • As we use to say in Boy Scouts, “there is nothing like pissing on the campfire”.
  • As we use to say in Boy Scouts, “there is nothing like pissing on the campfire”.