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GM Puts Brakes on Volt Plant Until Bailout Occurs
Michael Kanellos: December 17, 2008, 12:35 PM
General Motors has halted work on a plant for building engines for the Chevy Volt, the plug-in hybrid crucial to the company's survival, because it says it doesn't have the cash. It needs the federal bailout to continue.
GM is seeking $18 billion from the federal government. Until then it will play Ms. Pac Man at a convenience store in Flint, Michigan while waiting for its bailout check.
The company has not canceled the Volt, according to a story in the Associated Press. It still hopes to come out with the $40,000-ish car in late 2010 and that the plant delay will be temporary. Is it a bargaining tactic or a legitimate squeeze? Considering the billions that are flowing around, it's hard to say. GM in September said it would invest $370 million in the plant. Nonetheless, the company clearly needs cash. Either way, if the public and politicians see it as a bargaining tactic, it could be another publicity blunder for the company.
Ford says it has enough money to get through 2009. After that, it might get a job selling corn dogs at the state fair.




