General Motors is making its largest single investment for an engine plant, and it's happening right in the Town of Tonawanda. The automaker announced $888 million into new machinery and equipment at its Tonawanda Propulsion Plant to facilitate production of a next-generation V8 small-block engine. The engines will be used in GM’s line of trucks and SUV’s.
GM CEO Mary Barra said the investment into the WNY plant is key in providing an American base of production 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.,” said GM's Barra. “GM's Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come.”
Governor Kathy Hochul hailed the announcement, as the investment helps support 870 jobs at the plant, including 177 positions the governor’s office said was “at risk.”
“General Motors has been a major manufacturer and one of the largest employers in Western New York for years. This impressive project demonstrates how public/private partnerships can help companies like General Motors expand their operations while supporting jobs in Upstate New York,” Hochul said.
Upgrades to the River Road plant will begin in July, and are slated to be completed by 2027. $16.9 million in public money will be used in the project, through performance-based Excelsior Jobs Program tax credits.
Empire State Development’s president, Hope Knight, who oversees the Excelsior Program, called GM’s move a win.
“General Motors investing hundreds of millions of dollars in new machinery at its Tonawanda plant is a huge win for Western New York’s long running automotive industry," said Knight. "The entire region will benefit from the retention of hundreds of production and skilled trades jobs.”
Union leaders echoed those same thoughts. The plant employs hundreds of members of United Auto Workers.
“I have seen firsthand what disinvestment has done to Tonawanda and WNY communities. Many good paying union jobs I grew up on have been lost as our community has been devastated,” said UAW Region 9 Political Director Wence Valentin III. “This investment gives UAW Local 774 and our Tonawanda and WNY community a chance to thrive.”
The announcement comes as Tonawanda and Erie County leaders are still grappling with Sumitomo Rubber USA’s decision last November to close its nearby century-old Sheridan Drive plant, a move that put 1,550 people out of work. The town is also looking to redevelop another nearby skeleton of industry, the Huntley Power Plant.
“GM has become the linchpin for anything that happens in that industrial corridor,” said Tonawanda Town Supervisor Joe Emminger.
Workers at the Tonawanda Propulsion Plant will continue producing the current fifth-generation of GM engines, with the expectation that upgrades to manufacturing will be finished in time for the launch of the next generation in 2027.
