GM Gets Tax Breaks for Building the Volt

The Flint City Council approved a tax break (source: Detroit News) for GM in order to entice GM to build thieir new engine plant for the Chevy Volt in Michigan. The new plant is expected to cost $359 million to build and will be 530,000 square feet. The 1.4 liter turbo engine for the Volt and Chevy Cruze will be built in the new plant, which will retain about 300 jobs.

Production of the new engines is expected to begin in 2010. Assembly of the Volt will occur in the Hamtramck plant.  The Chevy Cruze is slated to be built in Ohio, after GM gained some hefty tax breaks to build it at their Lordstown plant.

GM is looking for state tax incentives, and is hoping the federal government will follow-up with tax incentives for those who purchase the new type of car, which is expected to retail at close to $40,000.