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GM Powertrain Plant in Tonawanda Will Produce Diesel Engine

By News Staff

Tonawanda, NY – Governor Spitzer joined GM officials and local elected leaders Friday afternoon in announcing that the General Motors Powertrain plant will produce a new diesel engine.

GM has agreed to invest $100 million at the Tonawanda plant, preserving 150 jobs. Total employment at the plant is 1,800 workers.

"General Motors has been part of the Western New York economy for almost 70 years," Governor Spitzer said. "The company's expanded investment in its Tonawanda plant will help ensure that relationship continues for many years to come."

As part of this agreement, GM will receive a $1 million capital grant from the Empire State Development Corporation. Sales tax abatements and a custom Payment in Lieu of Taxes (PILOT) program will be provided by the Erie County Industrial Development Agency, while the Erie County Workforce Investment Board will assist with worker training.

The new investment in machinery, equipment, site work and operations will allow GM to manufacture a new diesel truck engine, which will improve vehicle fuel economy by 25 percent and reduce CO emissions by 13 percent.

Earlier this year, GM announced a $300 million investment at the Tonawanda plant to build new V-8 gasoline engines for luxury cars.

"GM's investment in the Tonawanda plant, totaling $1.6 billion in the last ten years, is a significant vote of confidence in our employees and UAW Local 774 who have demonstrated their commitment and dedication to benchmark performance that is contributing to the company's turnaround," John Buttermore, GM Powertrain Vice President of Global Manufacturing said.