General Motors is making its largest-ever single investment in an engine manufacturing facility with an $888 million upgrade to its Tonawanda Engine Plant in Western New York. The massive infusion will fund new machinery and equipment to produce a next-generation V8 small-block engine, destined for GM’s trucks and SUVs.
GM CEO Mary Barra emphasized the strategic importance of the investment, highlighting its role in sustaining an American production base and workforce. “Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” Barra said. “The Buffalo plant has operated for 87 years and continues to innovate with more fuel-efficient, higher-performing engines that will power world-class trucks and SUVs for years to come.”
New York Governor Kathy Hochul praised the move, noting it safeguards 870 jobs at the River Road facility—including 177 positions previously identified as vulnerable. “General Motors has been a major manufacturer and one of the largest employers in Western New York for years,” Hochul remarked. “This project exemplifies how public-private partnerships can bolster companies like GM and preserve vital jobs in Upstate New York.”
Plant upgrades are scheduled to begin in July and are expected to conclude by 2027. The project will benefit from $16.9 million in public funding through the performance-based Excelsior Jobs Program tax credits. Hope Knight, president of Empire State Development, called the investment a “huge win” for the region’s automotive sector and local workforce.
Union leaders expressed optimism, acknowledging the positive impact on Western New York’s industrial community. UAW Region 9 Political Director Wence Valentin III reflected on past disinvestment and welcomed the investment as a lifeline for union workers and the broader community.
Until the plant’s modernization completes, Tonawanda workers will continue producing the current fifth-generation GM engines, with the next-generation line set to launch alongside the upgraded manufacturing capabilities in 2027.
This investment signals GM’s long-term commitment to American manufacturing and the revitalization of the Tonawanda plant as a key engine production hub.