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What does GM’s $888m investment mean for Tonawanda plant? Stability and a long-term future

General Motors is investing $888 million to upgrade its engine line production work on River Road in the Town of Tonawanda.
Ryan Zunner
/
BTPM NPR
General Motors is investing $888 million to upgrade its engine line production work on River Road in the Town of Tonawanda.

Ray Jensen Jr., UAW Region 9 Assistant Director, says he couldn’t believe when he first got word just after 5 p.m. on May 27 about GM’s pending $888 million investment in the Tonawanda plant.

Union leaders knew GM was getting ready to roll out a sixth-generation small-block V8 engine, but where the work was headed was unknown as the auto maker offered no advance signals and kept its decision as a tightly guarded secret.

Still, Jensen said an aggressive pitch - including nearly $17 million in state grants - were being offered on behalf of the Tonawanda plant.

“We did not have any inkling,” Jensen said. “We can't tell GM where to put the work; we can only advocate for our facilities here in our region.”

On one level, GM’s decision offers long term stability and plays a major role in cementing its future said

Western New York Area Labor Federation AFL-CIO President Peter DeJesus.

DeJesus said it opens the door for more GM investments in future years.

“It just guarantees that we're keeping good union jobs, good union careers in this region for years to come,” DeJesus said.

Since opening 87 years ago, the Tonawanda plant has produced more than 76 million engines and is on pace to top the 77 million mark this summer, according to the UAW.

DeJesus notes work force productivity was one of the swing factors in GM’s decision, himself a former auto worker.

“I think it secures this location for years to come. Hopefully, it’s not the end of it. Hopefully there will be other things that will be coming to this region as well,” DeJesus said.

Still, it took an aggressive approach to land the new GM engine line, especially since the plant - three years ago - saw one of its engine lines shifted to Tennessee.

Jensen says that fueled an effort to land the new V-8 engine line

“We’ll never know exactly why GM decided to put it here, but we're excited. We're thrilled, and this is great for everyone involved,” Jensen said.

So, what happens now? Engine line renovations and upgrades begin this summer, and the new line should be churning out its first new small-block engines by summer 2027.

Jim Fink discussed the GM investment on 'All Things Considered' with Ryan Zunner on May 28, 2025. That interview be heard by clicking the 'listen' button below.

ATCJimFinkStudioInterview52825.mp3

A Buffalo native, Jim Fink has been reporting on business and economic development news in the Buffalo Niagara region since 1987, when he returned to the area after reporting on news in Vermont for the Time-Argus Newspaper and United Press International.
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