General Motors announced on Tuesday, May 27th, that it will invest $888 million in its Tonawanda Propulsion Plant in Buffalo, New York, to support the production of the sixth-generation V8 engine.
This investment marks a shift for General Motors towards fuel engine development, different from the previously announced $300 million plan for electric vehicle drivetrains. The new V8 engine will continue to be used in General Motors’ full-size trucks and SUV models.
General Motors stated that this new generation V8 engine will utilize innovative combustion and thermal management technologies to enhance fuel efficiency and reduce emissions.
Mary Barra, Chair and CEO of General Motors, stated in a press release, “Our significant investment in the Tonawanda Propulsion Plant demonstrates our commitment to strengthening American manufacturing and supporting American employment.”
She added, “With 87 years of history, this plant continues to innovate its engine manufacturing, making them more efficient and higher-performing to deliver world-class trucks and SUV products for our customers in the future.”
According to the plan, production of the sixth-generation V8 engine will begin in 2027. Until then, the plant will continue producing the fifth-generation V8 engine.
Viewed as a strategic adjustment by General Motors due to lower than expected demand in the electric vehicle market, this move follows General Motors’ previous efforts lobbying Congress to repeal California’s electric vehicle sales regulations.
Governor Hochul of New York highlighted that this project will support 870 job opportunities at the Tonawanda plant, including 177 positions that were at risk of being eliminated. Reports indicate that New York is planning to offer up to $16.96 million in tax credits as a return on investment for General Motors’ latest venture.