GM To Invest $100 Million In New York Plant For Diesel Engine Production

General Motors Corp. will invest $100 million in its Tonawanda engine plant to produce an all-new, 4.5-liter V-8 Duramax high-output diesel engine for the Chevrolet Silverado and GMC Sierra light-duty pickup trucks and the HUMMER H2. The engine fuel efficiency improves by 25 percent when compared with gasoline engines. Environmental benefits of the new engine include a 13-percent reduction in CO2 versus gasoline engines, and at least a 90-percent reduction in particulates and NOx when compared to diesel vehicles today.

(front row, left to right) GM Powertrain Vice President Global Manufacturing John Buttermore, New York Governor Eliot Spitzer, Tonawanda Plant Manager Steve Finch, UAW Local 774 Shop Chairman Wally Wedington, (Second row, left to right) Erie County Executive Joel Giambra, Town of Tonawanda Supervisor Ron Moline, and UAW Local 774 President Peter Masich. (General Motors Photo/Doug Benz)

The investment includes a 200,000-square-foot facility renovation, new machinery, equipment and special tooling to bring diesel engine technology to New York. In addition to the $100 million facility investment, GM will invest an additional $41 million for vendor tooling, containers and investments at other locations necessary to support the Tonawanda operations. Construction is slated to begin later this year and production of the 4.5-liter V-8 diesel engine is scheduled to begin in the fourth quarter of 2009. The project will retain about 150 hourly jobs.

“GM is transforming its product portfolio to reduce fuel consumption and emissions, and the 4.5-liter V-8 diesel is an integral part of that transformation, as well as a component of GM’s strategy to diversify vehicle energy sources,” said John Buttermore, GM Powertrain vice president of global manufacturing. “This will be one of the most efficient and technically-advanced diesel engines, providing a 25 percent improvement in fuel efficiency and 13 percent reduction in CO2 emissions over gasoline engines in this segment – and it does all that while still providing the performance attributes required by customers in the areas of towing and hauling loads.”

The investment announced today is in addition to a $300 million investment GM announced in January for production of an all-new, DOHC V-8 engine to power GM’s luxury cars and SUVs. Production of that engine also begins in 2009.

“GM’s investment in the Tonawanda plant, totaling $1.6 billion in the last 10 years, is a significant vote of confidence in our employees and UAW Local 774, who have demonstrated their commitment and dedication to benchmark performance that is contributing to the company’s turnaround,” Buttermore said.