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General Motors to Make an Investment of $888M in Tonawanda Plant
ZACKSยท 2025-05-29 14:25
Investment Plans - General Motors Company (GM) plans to invest $888 million in its Tonawanda Propulsion plant to support the production of sixth-generation V-8 engines, aimed at improving performance, fuel efficiency, and reducing emissions [1][2] - This investment marks GM's largest single investment in an engine facility, making Tonawanda the second plant to produce the new engine series [2] Manufacturing and Production - The funding will be allocated for new machinery, tools, equipment, and facility upgrades, while the plant will continue producing the current fifth-generation V-8 until the sixth-generation production begins in 2027 [3] Market Position and Electrification - GM is the top-selling automaker in the United States, with strong sales from brands like Chevrolet, Buick, GMC, and Cadillac, contributing positively to its revenue [4] - The company has made significant progress in its electrification journey, achieving "variable profit positive" status for its EV portfolio in Q4 2024 due to production efficiencies and cost reductions [4] - GM expects to further reduce EV-related losses this year, supported by partnerships with companies like Vianode, Lithium Americas, LG Chemical, POSCO Chemical, and Livent, enhancing its EV supply chain [5]