WASHINGTON (dpa-AFX) - General Motors is investing $888 million in its Tonawanda Propulsion plant in Buffalo, New York, to expand engine production and develop a next-generation V-8, marking a strategic pivot from a previously announced $300 million plan for electric-vehicle drive unit manufacturing.
The investment will support the launch of GM's sixth-generation V-8 engine, which will feature enhanced fuel efficiency and reduced emissions through advanced combustion and thermal management technologies. The new engines will power the company's full-size trucks and SUVs, reinforcing GM's continued focus on internal combustion technology even as it gradually expands its EV lineup.
New York Governor Kathy Hochul confirmed the project will secure 870 jobs at the facility, including 177 that were previously at risk. In return, the state will offer up to $16.96 million in performance-based tax incentives.
The investment comes as New York also pauses penalties tied to shortfalls in EV sales for two years part of a broader trend of regulatory flexibility amid slower-than-expected electric vehicle adoption.
Though GM remains committed to its long-term goal of producing only electric light-duty vehicles by 2035, CEO Mary Barra emphasized the need to remain aligned with customer demand. 'Our investment in Tonawanda underscores our commitment to U.S. manufacturing and reflects our strategy of meeting customers where they are,' she said.
The Tonawanda plant, in operation for 87 years, will continue producing current-generation V-8 engines while preparing to launch the new model in 2027.
The move highlights GM's dual-track approach: advancing EVs while optimizing its core gasoline-powered portfolio to remain competitive in today's shifting auto market.
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