On Tuesday, GM announced that it is investing about $890 million to upgrade five North American factories as part of its fuel-efficient small-block engine program. The investments include facility renovations and installation of new, highly flexible engine machining and assembly equipment and special tooling for manufacturing efficiency and engine quality.
The investment includes $400 million for its Tonawanda, NY plant; $235 million for the facility in St. Catharines, Ontario; $115 million for Defiance, Ohio; $111 million for the Bedford, Indiana plant; and $32 million for its Bay City, Michigan plant. In addition to the monetary investment, the announcement consists of plans to create or retain more than 1,600 jobs in the five factories. Many of the newer positions will be filled by laid off GM employees.
The AP reports that GM has chosen the Tonawanda Engine plant to build a new V8 engine. This is the second big investment in the Tonawanda plant announced this year. In February, GM announced the western New York facility would receive $425 million in upgrades to begin building a new version of the four-cylinder Ecotec engine in 2012.
GM, the largest US automaker, is boosting its spending on more fuel-efficient engines as governments push for reduced pollutants and as rising fuel prices drive consumer demand for vehicles with better fuel mileage. Since emerging from bankruptcy in July, GM has invested $1.5 billion at 20 US and Canadian facilities and restored or created 7,500 jobs.
“GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building, and selling the world’s best vehicles,” said Mark Reuss, president of GM North America.
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