GM invests $888 million to make engines at New York plant
Published in Business News
General Motors Co. is pouring $888 million into a plant near Buffalo, New York, to make V-8 engines used in full-size SUVs and trucks, the company said Tuesday.
The capital infusion into Tonawanda Propulsion will pay for new machinery, equipment, tools and renovations as the plant gears up to start making the next generation of V-8 engines in 2027.
The announcement comes as GM grapples with pressure from President Donald Trump to increase U.S. manufacturing or pay hefty import taxes has imposed on vehicles and auto parts made outside of the United States.
“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” CEO Mary Barra 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.”
The company invested $70 million in the plant in 2020 as part of an effort to ramp up production of Chevrolet Silverado and GMC Sierra pickups.
Tonawanda is the second GM propulsion plant to make sixth generation V-8 engines. The automaker in 2023 spent another $500 million to get its Flint Engine plant ready to make engines that the company says will be "stronger performance than today's engines while benefiting fuel economy and reducing emissions," citing new combustion and thermal management innovations.
“This investment marks an exciting new chapter for our plant,” said Tara Wasik, plant director at Tonawanda. “For generations, our team has demonstrated its commitment to manufacturing excellence. We are grateful for the opportunity to continue supporting the Western New York community and steadfast in our mission to deliver world-class propulsion systems to our customers.”
A Detroit News request for comment to the United Auto Workers local president was not immediately returned Tuesday.
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