GM Shifts Tonawanda Plant to New V-8 Engines

General Motors is investing $888 million in its Tonawanda Propulsion plant in Buffalo, New York, replacing a previously planned $300 million electric vehicle drive unit program with production of sixth-generation V-8 engines. The change comes in response to slower-than-expected EV demand and eased regulatory pressures, leading GM to continue supporting gas-powered engines for full-size trucks and SUVs. Production of the new V-8 engines is set to begin in 2027, with the plant continuing to produce fifth-generation engines during the transition. The investment will fund new machinery and facility upgrades, securing 870 jobs, including 177 that were previously at risk, backed by nearly $17 million in state tax credits. GM and state officials have described the move as a commitment to U.S. manufacturing and local job security. The new engines are expected to offer improved performance, fuel economy, and reduced emissions.