General Motors Company (GM) to Invest $888 Million in Tonawanda Propulsion Plant
General Motors Company (NYSE:GM) on Tuesday announced plans to invest $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of V-8 engines used in SUVs and full-size trucks.
A group of technicians in a garage, inspecting car parts and ensuring safety compliance.
This will mark the largest single investment made by the company in an engine plant and builds on the strategic investments made over the last 15 years, including the half-billion-dollar investment announcement for its Flint Engine plant in January 2023 for the production of the sixth generation of V-8 engines.
The investment in the Tonawanda Propulsion plant will include new equipment, machinery, tools, and facility renovations. According to General Motors Company (NYSE:GM), the new engines are expected to be stronger than the current ones in use, benefit the fuel economy, and reduce carbon emissions.
New York’s governor, Kathy Hochul, says the project is likely to support 870 jobs at the plant, including several that were deemed at risk. The state intends to provide nearly $17 million in tax credits for the investment commitments.
Having said that, the investment announcement is a shift from an earlier $300 million commitment from General Motors Company (NYSE:GM) to make EV drive units at the plant, which is being seen as yet another sign of automakers adapting to slower-than-anticipated demand for EVs.
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