GM Accepts Loan Package; Building New Plant in Flint

Michigan Gov. Jennifer M. Granholm (D) speaks in front of a Chevrolet Cruze foam model during a news conference in Flint yesterday. General Motors, working to boost output of 4-cylinder engines for small cars, is investing $370 million to build a factory in Flint, which will be completed in 2010. (By Jeff Kowalsky -- Bloomberg News)

The Flint investment includes the 552,000-square-foot plant as well as machinery and other equipment. GM says it will invest another $21 million in tooling for its suppliers to support the Flint factory.

The new plant will double its global production of GM's small four-cylinder engines by 2011, with more than half the increase going into North America.

The factory, GM said, will have 300 flexible work stations that will allow different four-cylinder engines to be built without retooling.

Wagoner also said he was pleased with a new tax credit for electric vehicles approved Wednesday by the U.S. Senate because it will help people buy them and end the country's reliance on petroleum.

Under the Senate version, taxpayers may claim a credit of up to $7,500 for purchasing plug-in electric cars. The House is preparing a similar measure..

GM shares closed Thursday down 32 cents, or 3.1 percent, to $10.03.