GM to build more Chevy Volt parts in Michigan

By Reuters

Oct 28, 2014 06:58 AM EDT

General Motors Co (GM.N) will shift production of the transmission on the 2016 Chevrolet Volt from Mexico to Michigan, the automaker said.

Chief Executive Mary Barra plans to make the announcement Tuesday at the Detroit Economic Club.

The redesigned 2016 Volt gasoline-electric hybrid car goes on sale in the second half of 2015.

GM also plans to keep Volt engine production in Michigan, the company said. The 2016 model will get a new 1.5-liter four-cylinder engine that will be built in Flint, which also builds the 1.4-liter engine in the current Volt.

The new Volt transmission or, more accurately, the electric drive unit will be built next year at GM's Warren transmission plant outside Detroit.

By 2016, GM said 70 percent of the Volt's parts will be sourced in the United States. When the car was introduced in late 2010, more than 50 percent of its parts came from outside the country.

The Volt and its pricy two-door companion, the Cadillac ELR, are assembled at the Detroit-Hamtramck plant.

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