General Motors is a venerable name in American automobile history. The company's origins date back to 1904, when a Flint, Michigan, company, the Durant-Dort Carriage Company, then the nation's largest manufacturer of horse-drawn vehicles, saw the writing on the wall. The company's owner, one William Durant, bought the Buick Motor Company, then in 1908 Durant formed the General Motors company, adding the Olds Motor Works and later Cadillac, Oakland (which would become Pontiac), and several others. The rest, as they say, is history.
Today, General Motors is one of America's Big Three auto manufacturers, alongside Ford and Chrysler. The auto companies have seen some ups and downs in recent years. On Tuesday, though, General Motors announced a big "up" with the investment of $888 million into their Tonawanda Propulsion engine works in New York. The plant will be retooled to build GM's new sixth-generation V8 gas engines.
General Motors is investing $888 million in its New York propulsion assembly plant to produce the next generation V-8 engine, the company said May 27. GM said it is the automaker’s largest ever investment in an engine plant and the latest adjustment to electric vehicle production.
GM previously announced a $300 million investment to retool Tonawanda Propulsion near Buffalo, New York, to produce electric vehicle drive units.
Outside New York, GM produces small block V-8 engines for its full-size trucks and SUVs at two other locations ― Flint, Michigan, and Toluca, Mexico, according to its website.
GM seems to be, shall we say, de-emphasizing the electric vehicle programs.
The Tonawanda engine works have been in operation for 87 years. This, however, represents a significant overhaul of the plant to build the new engine, and will involve a lot more than just the plant workers; there will doubtless be short-term jobs created for engineers and workers to set up the new production lines.
Retooling for the next generation engine, its sixth, will take two years, the company said, meaning the fifth generation engine will continue to be produced in New York until 2027.
New York Gov. Kathy Hochul said in a news release celebrating the investment that the project will support 870 jobs at Tonawanda Propulsion, including 177 jobs deemed at risk. The state plans to provide up to $16.96 million in tax credits in return for investment commitments.
This is, as someone once said, a big freaking deal.
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General Motors Responds to Trump's Tariffs in a Way That Will Make Indiana Very Happy
GM's CEO, Mary Barra, has also expressed support for President Trump's tariffs and their role in "leveling the playing field" for American automobile manufacturers.
Barra, in an interview at The Wall Street Journal’s Future of Everything event, justified Trump’s tariffs, arguing that American car manufacturers face an unfair disadvantage because of foreign government subsidies and tax policies.
“For decades now, it has not been a level playing field for us automakers globally, with either tariffs or non-tariff trade barriers. So I think tariffs is one tool that the administration can use to level the playing field,” Barra said.
Barra and President Trump clashed during the president's first term, in no small part over GM's push (at that time) into electric vehicles and their moves towards foreign manufacturing; GM still has manufacturing operations in Mexico. While the president has not, as of this writing, commented on the Tonawanda project, it's a safe bet that he will be pleased with this investment.
General Motors remains a major American manufacturer, and with this new sixth-generation V8 engine, they are setting up for another decade or two, at least, of new internal-combustion engines. That's a smart move; traditional gas engines, now cleaner and more efficient than ever, remain the most practical and versatile propulsion for personal and commercial vehicles for most people and most businesses. GM seems to be betting on that continuing.
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