GM Confirms $890 Million Investment

Having paid the remaining debt to both the US and Canadian governments this wek, American manufacturer GM is getting ready to invest whatever money it has left into the future. GM confirmed yesterday it will invest, as already rumored, $890 million in upgrading five North American plants to produce a new generation of fuel efficient small block truck and car engines.

The plants to receive a nip'n'tuck are Tonawanda, N.Y. ($400 million), St. Catharines, Ontario ($235 million), Defiance, Ohio ($115 million), Bedford, Ind. ($111 million) and Bay City, Mich. ($32 million). The carmaker says the investment will allow the retention or creation of more than 1,600 jobs at the aforementioned facilities.

"GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building and selling the world’s best vehicles,” said Mark Reuss, president of GM North America.

“These latest investments show our commitment to improving fuel economy for buyers of every GM car, truck and crossover and giving them the best possible driving and ownership experience.”

The new engines to be manufactured at the aforementioned locations will use direct injection and an all-new advanced combustion system design which will allow them to provide "unprecedented fuel efficiency." They will entirely be made of aluminum engine blocks, while some will be E85 ethanol capable.

"Since the launch of the new GM last July, the company has announced investments of more than $2.3 billion at 22 facilities in the U.S. and Canada.  These investments restored or created more than 9,100 jobs, and they demonstrate a strong commitment to GM’s future and to the United States and Canada," GM adds.