General Motors is making a major bet on the continued relevance of internal combustion engines with a new $888 million investment in its Tonawanda Propulsion Plant in western New York. The funds will go toward producing the sixth-generation small-block V-8 engine, set to power the company’s full-size trucks and SUVs starting in 2027.
The upcoming V-8 is being touted as both more powerful and more fuel-efficient than its predecessor, featuring advanced combustion and thermal management technologies. According to GM, the new engine is designed to meet increasingly stringent emissions standards while maintaining the performance customers expect.
While production will also take place at GM’s Flint Engine Operations in Michigan, expanding capacity at Tonawanda signals the automaker’s belief in a sustained market for combustion-powered vehicles—even as it works toward a fully electric future.
This marks a strategic shift from GM’s earlier plan to use the Tonawanda facility for producing electric vehicle (EV) drive units, a commitment that previously carried a $300 million pledge. Despite the change in direction for the plant, the company reaffirmed its long-term goal of offering only electric light-duty vehicles by 2035.
The Tonawanda project will be GM’s largest single investment in an engine plant to date. It follows the company’s January 2023 announcement of a $918 million investment across five U.S. facilities, including Flint, to support the same V-8 program.
New York State is contributing to the effort with nearly $17 million in tax credits, aiming to safeguard and support approximately 870 jobs at the facility.
“This significant investment in GM’s Tonawanda Propulsion Plant reflects our commitment to strengthening American manufacturing and preserving U.S. jobs,” said Mary Barra, GM’s chairman and CEO. “For 87 years, our Buffalo-area plant has played a key role in GM’s success, and this new chapter continues that legacy—delivering more efficient, high-performance engines to meet the demands of our truck and SUV customers.”
With this move, GM underscores a dual-track strategy: pursuing aggressive electrification goals while still supporting internal combustion engines to meet current consumer demand.