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GM invests $163 million in Midwest plants, retains 184 jobs

General Motors announces a $163.2 million investment in its operations in Flint and Bay City, Mich., and in Defiance, Ohio.

The Chevrolet Volt has been on a promotion tour to several major U.S. cities this fall. GM's investment will ramp up engine production for the Volt and the Chevrolet Cruze. GM

On the heels of General Motors' huge IPO last week, the company today announced a $163.2 million investment in its Flint and Bay City, Mich., and Defiance, Ohio, plants.

The multimillion-dollar investment will be used in part to support engine production for the Chevrolet Volt, the Chevrolet Cruze, and a new Chevrolet small car to be built in the United States. The investment will protect 184 jobs at the three sites, GM said in a press release.

Flint Engine Operations manufactures the Ecotec 1.4-liter engine, used in the Chevrolet Cruze, and a 1.4L variant, used in the Chevrolet Volt. The plant is expected to start production of 400 engines a day in early 2011 and ramp up to 800 engines a day in late 2011. The newest investment will increase the plant's capacity to 1,200 engines a day in late 2012, according to GM.

Bay City will increase connecting rod and camshaft production, and Defiance will boost output of engine block and crankshaft castings.

"This investment is essential in ensuring we can meet the expected high demand for the Chevrolet Volt, Chevrolet Cruze, and a small car that will be produced at our Orion Township facility," said Kathleen Dilworth, Flint Engine Operations plant manager. "These three facilities will continue to play a key role in GM's resurgence and efforts to bring to market vehicles with segment-leading fuel economy."