General Motors commits $888 million to build next-gen V-8 engine in New York
General Motors commits $888 million to build next-gen V-8 engine in New York
Show Caption
Hide Caption
General Motors: History, innovation, and legacy
Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology.
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.
More from GM: General Motors revamps credit card, changes GM Rewards program to add discounts
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 hours ago
- Yahoo
Could Buying Lucid Group Stock Today Set You Up for Life?
Lucid makes a very small amount of cars relative to other automakers. It's hard to ignore that the company loses billions annually. Other key players are competing in the same space. 10 stocks we like better than Lucid Group › Regardless of its status as an electric vehicle (EV) player, Lucid Group (NASDAQ: LCID) is still just a car stock, and car stocks do not make investors fortunes. Tesla has been a rare exception, but we're talking about the rarest of the rare. Competition is one thing keeping EV makers like Lucid from rocketing shareholders to incredible wealth. In addition to Tesla, traditional automakers like General Motors and Ford also make electric vehicles, which, from personal experience, I can say are quite nice. The pure EV players don't have any sort of monopoly on that space of the business, and it seems very unlikely that the more established players within autos are going to let up the pressure. Lucid's annual sales are definitely growing, increasing from a mere $4 million in 2020 to over $807 million in 2024. The problem is that the business is losing billions annually, which explains why the company's share count continues to climb as it raises capital to cover operations by issuing shares. Total shares outstanding increased nearly 32% year over year in the first quarter of 2025, all while Lucid reported a net loss of $366 million, excluding accretion of redeemable convertible preferred stock, which took losses to $731 million. To me, the euphoria has worn off this stock, as it is down over 70% in the last five years. This isn't to say that it makes a bad product. Quite the opposite. Car and Driver gives the 2025 Lucid Air a five-star rating. The problem is the cost of building up a car company from scratch and competing against the established giants in the industry that are all making their own electric cars along with internal combustion engine vehicles. Lucid's car production came in at 9,024 vehicles in 2024, which is minuscule compared to competitors like General Motors, which sold well over 2 million vehicles. Guidance calls for around 20,000 vehicles to be produced in 2025, which is still pretty minuscule relative to the broader car market. I've been watching auto stocks for a long time, and I don't see the strength of the sector in terms of investment. The exception is, of course, Tesla, but its operations span across more than just cars, and I think its stock will also come back to earth at some point. People can only buy so many cars. Whether it's EVs or regular combustion engines, people aren't going to buy more cars than needed. With an increasing number of options within EVs, Lucid doesn't seem to particularly stand out from the pack, aside from the fact that it focuses on luxury vehicles. But competitors like Cadillac, Mercedes, and Volvo are all doing the same thing, and they have more of the infrastructure required to produce at scale. Most car stocks trade at around 10 to 13 times earnings. I think these electric start-ups will end up with similar valuations once the fervor has worn off. Mercedes operates in the luxury space and has delivered gains of over 56% over the last five years. That pales in comparison to the S&P 500 return of 94% over that same time frame, and I see very little reason for car stocks to start outperforming the market. It's a capital-intensive business and very susceptible to weak economic conditions. Back to my headline, I don't think Lucid stock will set anyone up for life, but it could make for an OK investment if the company can continue to scale. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Butler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy. Could Buying Lucid Group Stock Today Set You Up for Life? was originally published by The Motley Fool
Yahoo
9 hours ago
- Yahoo
6 New Luxury SUVs That Are Bad Investments for Retirees
When it comes to retirement, financial decisions matter more than ever, especially big-ticket purchases like a new vehicle. While luxury SUVs may offer style, comfort and cutting-edge features, not all of them are practical for retirees. On top of the purchase price, there are surprise costs that can eat into a retiree's budget. Read Next: Check Out: Here are six new luxury SUVs that may look appealing for retirees but could end up being a bad investment over the long run. Alan Gelfand, German car expert and owner at German Car Depot in Hollywood, Florida, noted that these vehicles look great, but they'll eat into your retirement savings. He explained that the air suspension system will likely start to fail, and the repairs can get pricey, especially when the warranty expires. 'The electrical systems are nightmarishly complex,' Gelfand said. 'A door handle malfunction requires the replacement of a control module that costs $800. The repair costs for infotainment system failures amount between $2,500 and $3,500.' Be Aware: The Maserati Levante, a luxury crossover SUV with sleek coupe-like design and a powerful engine, certainly turns heads. However, its sharp depreciation means you're unlikely to recoup much of your investment when it comes time to sell. 'The Levante experiences such rapid depreciation that it surpasses most luxury SUVs with a 60% to 70% value drop in three years,' Gelfand explained. Maintenance costs are also pricey, especially brake jobs. Gelfand also pointed out that customers often experience lengthy delays for basic components, as supplies are often limited to main urban areas. The BMW X7 may appeal to luxury SUV enthusiasts, but it's far from retiree-friendly. According to Gelfand, the twin-turbo V8 engine requires premium fuel, which can get costly. It's also known to have electrical issues. 'Each minor issue in the complex electronic systems results in costly diagnostic fees from the beginning,' Gelfand explained. The Mercedes-AMG GLS 63 is a powerful SUV, but it's overkill — and expensive — for retirees. 'The maintenance requirements of the AMG vehicle are strict since brake fluid needs to be changed every two years,' Gelfand said. It's also a gas guzzler and demands high-grade fuel. 'Retirement drivers who stay near home need to bear supercar maintenance expenses because they will never benefit from these features,' he said. According to Gelfand, the supercharged V8 Escalade-V is a maintenance disaster. 'The GM electronics in these vehicles experience reliability problems and supercharger rebuilds demand prices ranging between $6,000 and $8,000,' Gelfand explained. 'Older passengers will find the driving experience of this vehicle to be too much like a truck.' More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 6 New Luxury SUVs That Are Bad Investments for Retirees Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
12 hours ago
- Wall Street Journal
What's Good for Politicians Is Good for General Motors
General Motors CEO Mary Barra earned $29.5 million last year, and it's hard to argue that she isn't earning her keep. The automaker sold more cars in the U.S. than any other company last year, and its profits have doubled in her 11 years as CEO. Credit her ability to please her most important customers—politicians. Their command is her wish. While doubling down on manufacturing profitable gas guzzlers, Ms. Barra promoted electric vehicles to ingratiate herself to Democrats who want to eliminate the products that churn out profits for her company. She again proved her flexible principles last week by praising President Trump's auto tariffs, which the company estimates will dent its profits by $5 billion this year. 'I think tariffs is one tool that the administration can use to level the playing field,' she said. What she omitted is that the playing field has been tilted in GM's favor for decades by a 25% tariff on pickup trucks, which gives domestic automakers an effective monopoly. Also: Mr. Trump's new 25% tariffs on all cars and parts not made in the U.S. will hurt GM, but they will wallop its foreign competitors even more. In 2018 Ms. Barra got a crash course in politicking when she announced a corporate restructuring that involved closing four U.S. plants that produced low-selling sedans. Her goal was to make GM leaner and more profitable. In this she succeeded, but she blundered by not throwing a bone to Mr. Trump, who thinks CEOs answer to him.
