General Motors has announced a major $888 million investment in its Tonawanda Propulsion plant in Buffalo, New York, aimed at producing the sixth generation of its V-8 engines for full-size trucks and SUVs. The move underscores GM’s commitment to U.S. manufacturing and job preservation, marking a significant shift in strategy at a time when electric vehicle adoption has lagged behind initial industry expectations.

This investment more than doubles the company’s previous $300 million pledge to produce electric vehicle drive units at the facility. GM explained that the latest generation of V-8 engines will feature advanced combustion and thermal management technologies, enhancing both fuel efficiency and emissions performance without sacrificing the power and reliability consumers expect in large vehicles.

Mary Barra, GM Chair and CEO, emphasized the long-term value of the investment. “Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” she stated. The Buffalo-based plant, which has been in operation for 87 years, will continue to produce fifth-generation V-8 engines while preparing for the launch of the new model in 2027.

The decision comes as traditional automakers adjust strategies in response to market realities. EV sales have not grown at the rate initially projected, and GM has joined other industry leaders in urging lawmakers to reconsider aggressive zero-emission mandates, including California’s controversial EV rules.

The Tonawanda project is expected to support 870 jobs, including 177 that were previously at risk. New York Governor Kathy Hochul announced that the state will offer up to $16.96 million in tax incentives to support GM’s investment and job retention efforts.