General Motors to Make an Investment of $888M in Tonawanda Plant
General Motors Company GM has revealed plans to invest $888 million into its Tonawanda Propulsion plant to support the production of its sixth-generation V-8 engines, which power full-size trucks and SUVs. These new engines are expected to outperform current models while enhancing fuel efficiency and lowering emissions, thanks to advancements in combustion and thermal management technologies.Over the past 15 years, GM has consistently invested in its manufacturing capabilities. In January 2023, it committed $500 million to its Flint Engine plant for the production of the sixth-generation V-8 project. The latest investment is now GM's largest single investment in an engine facility, making it the second plant to take on production of the new engine series.The funding will go toward new machinery, tools, equipment and upgrades to the facility. Tonawanda Propulsion, represented by UAW Local 774, will continue producing the current fifth-generation V-8 while gearing up to begin sixth-generation production in 2027.General Motors is the top-selling automaker in the United States. The company's hot-selling brands in America, namely Chevrolet, Buick, GMC and Cadillac, are boosting its top line. It is advancing well in its electrification journey. In the final quarter of 2024, GM's EV portfolio became 'variable profit positive' thanks to production scale efficiencies, lower material costs and expansion of the portfolio with the Cadillac Escalade IQ and Sierra EV launches. The company expects to cut EV-related losses further this year. Also, General Motors' deals with Vianode, Lithium Americas, LG Chemical, POSCO Chemical and Livent have boosted its EV supply chain, aligning with its long-term electrification goals.
General Motors carries a Zacks Rank #5 (Strong Sell) at present.Some better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CARG's 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for MGDDY's 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and 4 cents, respectively, in the past seven days.
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Miami Herald
3 hours ago
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Business Insider
6 hours ago
- Business Insider
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