General Motors is investing $888 million in its Tonawanda propulsion plant in Buffalo, New York, to increase production of next-generation V8 engines, a major pivot from a previously planned $300 million investment in EV drive units.
The move reflects a broader slowdown in electric vehicle (EV) demand, with GM adapting its strategy while still maintaining long-term EV goals.
Key Highlights:
- Investment supports 6th-gen V8 engines for full-size trucks and SUVs
- NY Governor: 870 jobs supported, with $16.96M in tax credits
- Original EV drive unit production never launched at the plant
- GM still aims to sell only EV light-duty vehicles by 2035
The decision follows GM’s lobbying efforts to roll back California EV mandates and comes amid a wider industry recalibration toward consumer demand realities.