The engine plant in Flint, Michigan that GM was going to build to make the inline 4 cylinder engine that would power the Volt and the Cruze was put on hold.  Now we are seeing reports that the plant altogether will be scrapped.

The worsening economy is causing the car market to shrink, with fewer sales GM doesn’t have the cash on hand needed to pay the $370 million for the facility.  According to ABC 12 GM has cancelled all construction plans for Flint giving no official explanation for it.  However, GM says it remains commited to the city of Flint.

“Our commitment to the city of Flint hasn’t changed,” GM spokeswoman Sharon Basel said. “Right now we are looking at all possible options and scenarios.”

With the new plant cancelled it is likely that GM will either outsource the engine or just use one of their existing engines for use in the Volt or the Cruze.