General Motors is investing $888 million in its Tonawanda Propulsion plant in Buffalo, New York, “to support the production of the sixth generation of GM’s V-8 engines,” the automaker announced Tuesday.
The investment is a shift from a previously announced $300 million commitment to make electric-vehicle drive units at the plant, as the V-8 engines are used in GM’s full-sized trucks and SUVs.
GM says the newer engines will provide drivers better fuel economy and reduce emissions by utilizing “new combustion and thermal management innovations.”
“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the US,” Mary Barra, GM Chair and CEO, said in a statement.
“GM’s Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come,” she concluded.
While the plant prepares to start production of the sixth generation V-8 engine in 2027, it will continue to produce fifth generation V-8 engines.
The move is likely another sign of automakers adapting to slower-than-expected market demand for EVs and comes after the Detroit automaker aggressively lobbied Congress to rescind California electric-vehicle rules.
New York Governor Kathy Hochul said the project will support 870 jobs at Tonawanda Propulsion, including 177 jobs deemed at risk, according to Reuters. The state plans to provide up to $16.96 million in tax credits in return for investment commitments.
Tonawanda Propulsion is represented by UAW Local 774, GM said.
Reuters contributed to this report.
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