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GM to pour $888M into building new V-8 engine in New York
GMGM(US:GM) Fox Businessยท2025-05-28 11:21

Group 1 - General Motors is investing $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of V-8 engines, shifting from a previous $300 million commitment for electric-vehicle drive units [1][2] - The new V-8 engines are expected to provide better fuel economy and reduce emissions through new combustion and thermal management innovations [2] - The investment will support 870 jobs at the Tonawanda Propulsion plant, including 177 jobs deemed at risk, with New York State providing up to $16.96 million in tax credits [8] Group 2 - The Tonawanda Propulsion plant has been operational for 87 years and will continue producing fifth generation V-8 engines while preparing for the sixth generation production set to start in 2027 [5] - The move reflects automakers adapting to slower-than-expected market demand for electric vehicles and follows GM's lobbying efforts against California's electric-vehicle regulations [8]