GM to invest $890 million to build cleaner, more fuel-efficient engines

General Motors will invest more than $890 million which will create or retain more than 1,600 jobs in five North American plants to produce a new generation of fuel efficient small block truck and car engines. The investment, announced on April 27, consists of the following:

Two plants will support the engine production:

• Tonawanda, N.Y. – an investment of $400 million resulting in more than 710 jobs
• St. Catharines, Ontario – an investment of $235 million resulting in approximately 400 jobs

Three plants will support engine casting and component production:

• Defiance, Ohio – an investment of $115 million resulting in up to 189 jobs
• Bedford, Ind. – an investment of $111 million resulting in about 245 jobs
• Bay City, Mich. – an investment of $32 million resulting in over 80 jobs

The investments include facility renovation and installation of new, highly flexible engine machining and assembly equipment and special tooling designed for manufacturing efficiency and engine quality. At the casting facilities, investments include expansion of semi-permanent mold and precision sand casting technologies that result in a high degree of dimensional accuracy and material strength properties needed to support the newer, more efficient engines in GM’s product portfolio.

“GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building and selling the world’s best vehicles,” said Mark Reuss, president of GM North America. “These latest investments show our commitment to improving fuel economy for buyers of every GM car, truck and crossover and giving them the best possible driving and ownership experience.”

The next generation small block engine family will have unprecedented fuel efficiency through direct injection and an all-new advanced combustion system design. The new engine family will rely exclusively on aluminum engine blocks, which are lighter and contribute to the improved fuel efficiency. In addition to being E85 ethanol capable, these engines are being designed with the capability to meet increasingly stringent criteria emissions standards expected throughout this decade.

Specifics about the engine capabilities as well as product applications will be shared at a later date.

Since the launch of the new GM last July, the company has announced investments of more than $2.3 billion at 22 facilities in the U.S. and Canada. These investments restored or created more than 9,100 jobs, and they demonstrate a strong commitment to GM’s future and to the United States and Canada.