According to plans, the engine will be roughly 1.0 liters in displacement and will be powered on only when the Volt's battery pack becomes discharged, at which time it will act as a generator for both the battery pack and the electric motors that propel the vehicle.
GM has already announced that a new plant in Flint will make the 1.4-liter engine for the 2011 Chevrolet Cruze, so we assume this new facility will be making both the Volt and Cruze powerplants, though it's not known if the engines will share tooling or components like engine blocks.
In yet more news of government assistance (this time local), the state of Michigan approved $132.5 million in tax incentives for both the new Flint plant as well as for upgrades to four additional GM facilities. In total, GM's proposed new projects ring in at $838 million, which includes an overhaul of the Detroit-Hamtramck assembly plant that once built Cadillacs but is now gearing up for Chevy Volt production.--Colin Mathews
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