GM to invest in plant to produce new engine

Production is scheduled to begin late in 2009.

TONAWANDA, N.Y. — General Motors Corp. said Friday it 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 carbon dioxide compared with gasoline engines, and at least a 90 percent reduction in particulates and nitrogen oxide when compared with diesel vehicles today, GM officials said.

Other investments

In addition to the $100 million facility investment, GM said it 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, company officials said.

The investment 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 is slated to begin 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,” said John Buttermore, GM Powertrain vice president of global manufacturing.