General Motors to Invest $888M in Engine Production in NY City

General Motors (GM) will invest a whopping $888 million in its Tonawanda propulsion plant (Buffalo, New York) to improve engine production capabilities and develop sixth-generation V8 engines. 

This investment represents a notable change in direction from GM’s previous $300 million commitment to electric vehicle (EV) drive unit production at the same site. The new investment represents a careful balance, considering that while this automaker is not stopping its EV development, it is still expanding its ICE market offerings with the popular full-size trucks and SUVs. 

The sixth-generation V8 engines will improve consumers’ fuel economy and are consistent with their preference for performance.

Kathy Hochul, governor of New York, called the investment “transformative” and said it would retain and secure 870 jobs, including 177 identified as at-risk. Based on GM’s investment, the state has offered up to $16.96 million in tax incentives. 

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GM remains focused on a long-term strategy for EVs, including a commitment to selling only electric light-duty vehicles by 2035. However, executives have emphasized that this strategy would be flexible and consistent with customer preferences. GM continues to launch new EVs and evaluate certain EV-focused projects, including selling its interest in a battery joint venture with LG Energy.