DETROIT, USA – GENERAL Motors Co said Monday it will spend US$700 million at eight Michigan facilities to get its new rechargeable electric car road-ready — a technological and economic boost for its home state.

GM officials detailed their investment plans for the Chevrolet Volt on the floor of its assembly plant that straddles the border between Detroit and tiny Hamtramck. The plant, which will begin mass producing the Volt in late 2010, is getting a US$336 million upgrade that includes new machinery and other equipment.

GM’s combined Volt-related investment also includes US$202 million for a new plant in Flint that will build engine generators; US$43 million for a plant in

the Detroit suburb of Brownstown Township that begins making battery packs early next year; US$37 million for a Bay City powertrain plant; and US$27 million for the US$135.2 million in tax incentives for those sites

and others.

In a year that GM and Chrysler endured bankruptcy protection and announced the closure of nearly 30 plants in the US and Canada, the news was as much a relief as celebration for the politicians and workers who attended

the news conference. Many speakers welcomed the chance to talk about something other than the state’s economic woes.

In August, Vice President Joe Biden came to Detroit to announce that Michigan would be the largest recipient of US$2.4 billion in federal grants to develop next-generation electric vehicles and batteries. Michigan’s take — more than US$1 billion — was to be shared by 11 manufacturers and research facilities, including GM.

Jon Lauckner, GM’s vice president of global product planning, said the company expects it will be the first US facility owned by a major automaker to produce an electric car.

“With GM at the lead, electronic vehicle development is creating entirely new industries,” he said.

GM Vice Chairman Bob Lutz was expected to make the announcement, but didn’t attend the event. Two GM spokesmen said Lutz had a scheduling conflict.

GM said in August it expects the Volt to get 230 mpg (1 litre per 100 kilometres) in the city, based on early tests using draft guidelines from the US Environmental Protection Agency for calculating mileage of extended range electric vehicles.

The car is expected to cost between US$35,000 and US$40,000. That price range could keep many away, but GM officials said tax incentives for buyers are expected to make it more affordable as the company ramps up manufacturing and lowers its costs.