By Eileen Buckley
http://stream.publicbroadcasting.net/production/mp3/wbfo/local-wbfo-898722.mp3
Tonawanda, NY – General Motors is making a huge investment that will save and create new jobs at the Tonawanda Engine plant. More than $890 million will be pumped into five GM facilities in the US and Canada. $400 million will go to GM's Tonawanda Powertrain plant to produce a new V-8 Engine.
Governor David Paterson came to the facility this morning to help celebrate the new engine line.
"This is a major investment in the region's economy and ensures the long-term future of the Tonawanda engine plant," Paterson said.
It is the second big investment to be announced this year at the Tonawanda plant, which last year saw two engine lines shut down as part of the automaker's bankruptcy restructuring. In February, GM said it would spend about $425 million on upgrades to begin building a new version of its four-cylinder Ecotec engine in 2012.
The Tonawanda plant currently has 650 workers.
Plant manager Steve Finch and Bob Coleman, shop chairman of United Auto Workers Local 774, credited a good labor-management relationship for securing the new line.
The state will contribute a $6 million capital grant. Erie County has approved $880,000 in tax incentives.
Art Wheaton is an auto industry analyst with Cornell University's School of Industrial and Labor Relations in Buffalo. He tells WBFO's Mark Scott there are a number of reasons for why GM is investing here.
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