It’s the company’s biggest single investment in an engine plant, and will make sixth generation V-8 engines used in large trucks and SUVs.
The company’s current Tonawanda Propulsion plant will be remodelled, but in the meantime will keep making fifth generation V-8s.
The $888m price tag includes spending on new machinery, tools, and plant renovations.
“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,” said Mary Barra, General Motors’ chief executive.
Production of the new engine is due to begin in 2027.
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