General Motors on Tuesday announced it would invest $888 million in its Tonawanda Propulsion Plant in New York State, a welcome decision for both the United Autoworkers union and the governor of New York.
The investment would go toward machinery, tooling and renovations at the plant to build the automaker’s new sixth-generation V-8 engines for full-size trucks and SUVS. Production of fifth-generation engines would continue during construction, which is expected to wrap up in 2027.
Employing 870 workers, the 3.1 million square foot Tonawanda, New York, plant is a real workhorse. It opened in 1938 to build Chevrolet engines and axles. During World War II, it was converted to produce military aircraft engines. After the war, the plant returned to automotive production, and by the 1960s it was assembling 16 engine models. The site currently builds engines for Cadillac, Chevrolet, GMC and Buick – including the 6.2L LT2 Small Block V8 for the Corvette Stingray and its hybrid cousin, E-Ray.
Tonawanda Propulsion Plant is scheduled to build its 77 millionth engine this summer.
According to a statement from New York Gov. Kathy Hochul, the investment will save 177 jobs at the plant that were at risk of being eliminated. GM will receive up to $16.9 million in public funds for the project, in the form of tax credits from the state’s Excelsior Jobs Program.
Tonawanda’s economy took a big hit last November when Sumitomo Rubber USA announced that it was closing its tire manufacturing facility there, eliminating more than 1,300 jobs. The city has a population of just under 15,000.
During 2023 contract negotiations with the UAW, GM promised investments of $300 million for drive unit production at Tonawanda.
“This enormous investment is exactly what we’ve been calling for,” said UAW Vice President Mike Booth. “Skilled UAW members … make GM’s profits, so it’s great to see the company investing back into its union workforce so we can keep building quality, world-class products.”
Workers at GM’s Rochester, New York, plant who build battery cooling lines for electric vehicles haven’t fared as well as their neighbors to the west who build gas-powered engines. Also on Tuesday, 74 Rochester employees were laid off, reducing the number of employees at the plant to 525.
