Union United Automobile Workers (UAW) Celebrates General Motors' (GM) Investment in Tonawanda Factory

Union United Automobile Workers (UAW) Celebrates General Motors' (GM) Investment in Tonawanda Factory

Tonawanda Propulsion Plant to Receive $888 Million Investment for New V-8 Engine Production

General Motors (GM) revealed on Tuesday plans to inject $888 million into its Tonawanda Propulsion Plant in New York State, a decision hailed by the United Autoworkers union and the state's governor.

The investment serves to equip the plant with the necessary machinery, tooling, and renovations needed to produce GM's latest sixth-generation V-8 engines for full-size trucks and SUVS. Remarkably, production of the current fifth-generation engines will continue during the construction phase, scheduled to conclude in 2027.

Established in 1938, the 3.1 million square foot Tonawanda, New York, facility is a testament to perseverance and adaptability. Originally built as the Chevrolet Motor and Axle Plant, the plant was initially dedicated to assembling inline-six engines and axle assemblies for Chevrolet vehicles. However, during World War II, it played a crucial role in producing military aircraft engines. Following the war, the plant returned to automotive production, evolving to assemble a wide range of engines, including the 18-cylinder radial engines that powered P-47 fighter planes. By the 1960s, the site was producing 16 engine models, and currently manufactures engines for Cadillac, Chevrolet, GMC, and Buick, including the 6.2L LT2 Small Block V8 for the Corvette Stingray and its hybrid counterpart, E-Ray.

The plant is on track to build its 77 millionth engine this summer. This massive investment is expected to safeguard 177 jobs that were at risk of phasing out. GM will receive up to $16.9 million in public funds for the project, in the form of tax credits from the state's Excelsior Jobs Program.

In November 2021, the city faced a significant setback when Sumitomo Rubber USA announced the closure of its tire manufacturing facility, leading to the loss of more than 1,300 jobs. Tonawanda's relatively small population of just under 15,000 residents undoubtedly felt the economic impact.

During the 2023 contract negotiations with the UAW, GM had committed to investing $300 million for drive unit production at Tonawanda.

UAW Vice President Mike Booth expressed his appreciation for the investment, stating, "This enormous investment is exactly what we've been calling for. Skilled UAW members have always contributed to GM's profits, so it's great to see the company investing back into its union workforce."

However, the workforce at GM's Rochester, New York, plant, which builds battery cooling lines for electric vehicles, have not shared the same fortune. On Tuesday, 74 Rochester employees were let go, reducing the plant's employment to 525.

The $888 million investment by General Motors (GM) towards the Tonawanda Propulsion Plant's new V-8 engine production clearly demonstrates their continuing commitment to the financial aspect of their business in New York State. As a result, this investment will secure 177 jobs at the plant, contributing significantly to the local business community.

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