General Motors has postponed its Flint, Mich., plant that was to make engines for its Chevy Volt vehicle, FOX Business has learned.

GM confirmed to FOX Business's Jeff Flock that it had cancelled construction contracts on the plant, saying it does intend to move forward with the new plant at some point, but because of economic conditions it is halting construction at this time.

It’s "part of the tough, wrenching decisions being made in Detroit these days. On the positive side, the urgency they are facing now is forcing these types of difficult decisions which in the end are probably best for the health of the company,” a source told Flock.

GM said it is "not ruling out" the possibility of making the Volt engine at its existing Flint engine plant.

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