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GM Invests $888 Million in New York Plant to Build Sixth-Generation V-8 Engines

The upgrade underlines GM’s confidence in traditional powertrains alongside its rising electric vehicle sales.

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Overview

  • General Motors announced an $888 million investment in its Tonawanda Propulsion facility to produce sixth-generation V-8 engines beginning in 2027.
  • The project marks GM’s largest single engine plant outlay and is expected to support about 870 jobs, including restoring 177 positions previously at risk.
  • New York State approved up to $16.96 million in tax incentives to help fund the plant’s retooling, equipment upgrades and facility renovations.
  • Tonawanda will continue manufacturing fifth-generation V-8 engines until the new generation enters production in 2027.
  • The move follows a $579 million retooling in Flint, Michigan, and comes as GM’s battery-electric vehicles captured 14.4% of U.S. EV sales in April, with some Republicans crediting Trump-era pro-growth policies.