GM to invest $100 million in engine plant

General Motors Corp will invest $100 million in its Tonawanda NY engine plant to produce an all-new, 4.5-liter V-8 Duramax high-output diesel engine for the Chevrolet Silverado and GMC Sierra light-duty pickup trucks and the Hummer H2.

The engine fuel efficiency improves by 25% when compared with gasoline engines. Environmental benefits of the new engine include a 13 percent reduction in carbon dioxide versus gasoline engines, and at least a 90 percent reduction in particulates and NOx versus diesel vehicles.

The investment includes a 200,000-square-foot facility renovation, new machinery, equipment, and special tooling to bring diesel engine technology to New York. In addition to the $100 million facility investment, GM will invest another $41 million for vendor tooling, containers, and investments at other locations necessary to support the Tonawanda operations. Construction is slated to begin later in 2007, and production of the 4.5-liter V-8 diesel engine is scheduled to begin in the fourth quarter of 2009. The project will retain about 150 hourly jobs.