General Motors commits $888 million to build next-gen V-8 engine in New York
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Retooling for the next generation engine will take two years, the company said, meaning the fifth generation engine will continue to be produced in New York until 2027.
The company needs to continue producing the older V-8 engine to address manufacturing issues currently under federal investigation.
General Motors is investing $888 million in its New York propulsion assembly plant to produce the next generation V-8 engine, the company said May 27. GM said it is the automaker's largest ever investment in an engine plant and the latest adjustment to electric vehicle production.
GM previously announced a $300 million investment to retool Tonawanda Propulsion near Buffalo, New York, to produce electric vehicle drive units.
Outside New York, GM produces small block V-8 engines for its full-size trucks and SUVs at two other locations ― Flint, Michigan, and Toluca, Mexico, according to its website.
Retooling for the next generation engine, its sixth, will take two years, the company said, meaning the fifth generation engine will continue to be produced in New York until 2027.
New York Gov. Kathy Hochul said in a news release celebrating the investment that the project will support 870 jobs at Tonawanda Propulsion, including 177 jobs deemed at risk. The state plans to provide up to $16.96 million in tax credits in return for investment commitments.
The announcement is the latest production change GM has made, often citing 'marketplace changes.' GM said April 23 that it planned to expand transmission production at its Toledo (Ohio) Propulsions Systems plant where it builds transmissions used in the Silverado and Sierra pickup trucks, while reducing electric drive unit production.
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The company also laid off 200 employees at its Factory Zero in Detroit and Hamtramck, Michigan, in April to ensure production will 'align with market dynamics.' Neither move was tariff-related, the company confirmed.
Adds on investment in Michigan
The investment announced May 27 builds on a $579 million commitment to construct the same engine in Flint.
A company spokesman said in 2023 following that announcement that the transition requires significant changes to the assembly line.
'With all of the renovation work that needs to be done to prepare Flint Engine to build the company's sixth generation V-8 engine, GM will continue to produce Gen 5 V-8 engines for several years,' the spokesperson said.
It is not unusual to have multiple plants produce the same engines given the advantages associated with streamlining production, according to Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
GM builds its heavy-duty Chevrolet Silverado and GMC Sierra pickups at Flint Assembly. A spokesperson said engines produced in Buffalo feed vehicle production at Fort Wayne Assembly, Indiana; Arlington Assembly, Texas; Wentzville, Missouri; Oshawa, in Canada; Bowling Green, Kentucky, and overflow to Flint Assembly.
The next generation Silverado is not expected to arrive before 2027, likely in line with the newest V-8 generation, Fiorani told the Detroit Free Press.
'Investments this large means those plants will be around for a while. You can't spend half a billion ― or nearly a billion ― on a plant and have it go away in a couple years,' he said. 'This guarantees production will continue for years, as it takes that much time for a return on that size of investment. We're likely to see V-8s well into the 2030s.'
Already facing manufacturing issues
In addition to adequate retooling time, there's another reason why GM will continue producing the fifth-generation V-8 for a while, Fiorani added: The company needs to continue producing the older V-8 engine to address manufacturing issues currently under investigation from the National Highway Traffic Safety Administration.
GM opted to voluntarily recall about 721,000 vehicles worldwide for defective internal engine parts ― the crankshaft and connecting rods ― damaged during the manufacturing process. Any vehicle engines that don't pass inspections at the dealership level will need to be replaced.
Models impacted include Cadillac Escalade and Escalade ESV; Chevy Silverado 1500, Suburban, and Tahoe; and GMC Sierra 1500, Yukon, and Yukon XL produced for 2021–24 model years.
Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@freepress.com.
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