Automotive: GM to invest $888 million in Tonawanda for new V8s (Update)

With EV sales weak and gasoline prices falling under the Trump Administration, General Motors is doubling down on gasoline vehicles, unveiling a $4 billion investment to shift production of the Cadillac Escalade, Chevrolet Silverado, and GMC Sierra to Michigan, as well as boosting truck and SUV output across the U.S.

The automaker is now rumored to be considering ICE models that weren’t previously in development, marking a notable change in The General’s internal product planning.

Some of these new ICE models are reportedly already in development, although GM has yet to reveal them publicly.

Consumers remain cautious about charging infrastructure, range limitations, and price premiums, especially in non-urban markets, and as such, traditional ICE vehicles are seen as much more viable, both from both a product planning and sales volume standpoint.

General Motors announced plans to invest $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of GM’s V-8 engines, used in full-size trucks and SUVs.

This new generation of engines is expected to deliver stronger performance than today’s engines while benefiting fuel economy and reducing emissions. New combustion and thermal management innovations are a key factor driving these improvements.

GM has made strategic investments in its manufacturing facilities over the last 15 years. In January 2023, the company announced a half-billion-dollar investment in its Flint Engine plant for production of the sixth generation of V-8 engines. Today marks the largest single investment the company has ever made in an engine plant and makes Tonawanda the second GM propulsion plant to produce this new generation of engines.

“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” said Mary Barra, Chair and CEO. “GM’s Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come.”

The investment includes new machinery, equipment, and tools, as well as facility renovations.

“This investment marks an exciting new chapter for our plant,” said Tara Wasik, plant director at Tonawanda. “For generations, our team has demonstrated its commitment to manufacturing excellence. We are grateful for the opportunity to continue supporting the Western New York community and steadfast in our mission to deliver world-class propulsion systems to our customers.”

Tonawanda Propulsion, represented by UAW Local 774, will continue to produce the fifth generation of GM’s V-8 engine while the plant prepares for the next generation’s start of production in 2027.