New Chevy Volt plant screeches to a halt amidst GM cash problems

GM has a checkered past when it comes to creating products and running a business with sustainability in mind. But with the balloon of gas prices in recent history, demand for fuel efficient vehicles has jumped upward and GM is racing to produce the Chevy Volt by 2010. The problem? GM’s dwindling supply of cash means plans to build a new manufacturing plant in Flint, MI stopping short.

Building the new plant would cost GM $370 million, and with the financial market in its current cash hoarding phase, the company is not able to acquire additional investments through traditional channels. Automaker pleas to Congress were recently shot down amid arguments with the United Auto Workers (UAW) union on allowing wage cuts that would bring compensation in line with Japanese automakers. The Whitehouse has indicated its willing to help, but no official decision is out yet.

The plant hasn’t officially been nixed yet, but according to The Flint Journal:

"Given the situation that GM is in right now, all expenditures, anything that involves capital, is under review," GM spokeswoman Sharon Basel said. "And such as the case with the Flint engine plant.".

It’s possible that GM could run out of money by the end of December. Rumors of possible bankruptcy or a takeover by foreign companies have made their way online.

The staggering part of this whole scenario is GM’s approach over the last several years, which led down this path. A focus on creating products that are as sustainable as possible, in line with demand from a growing segment of affluent consumers would have placed the company in a good position to gain.

Instead, GM produced larger vehicles that were high profit and high impact on the environment. Gas was cheap, cash was readily available, and so the company grew complacent in nurturing its big vehicle cash cow.

Would anyone still like a Hummer?