General Motors announced an $888 million plan to upgrade its Tonawanda Propulsion facility near Buffalo, New York. The company stated that the project would support the production of sixth-generation V-8 engines for SUVs and full-size trucks.
Largest Single Investment in an Engine Plant
The investment will cover new equipment, tools, and machinery, and marks General Motors’ largest commitment to an engine facility. It also follows the company’s January 2023 announcement to spend $500 million at its Flint Engine site in Michigan.
General Motors CEO Mary Barra said the project at the 87-year-old New York facility would improve its engines’ fuel efficiency and performance.
Preparing for 2027
The company noted that Tonawanda would continue to make fifth-generation V-8 engines while the location prepares for production of the sixth generation in 2027. The plant is represented by UAW Local 774.
Forecasting Tariff Troubles
In April, General Motors reported Q1 earnings of $2.78 billion, down from $2.98 billion in the same period a year ago. Revenue rose from $43.01 billion to $44.02 billion.
The company also announced that it expects the 25% U.S. auto tariffs on imported automobiles and auto parts to result in $4 billion to $5 billion in revenue losses for 2025.
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