- Project Will Support 870 Jobs, Building on Company’s Nearly 90 Years of Manufacturing in Tonawanda
- Investment Will Provide New Machinery and Equipment to Build Engine and Component Production for GM’s Most Popular Vehicles
Governor Kathy Hochul announced that General Motors, a global automotive company, will invest $888 million in new machinery and equipment at its Tonawanda plant to produce a next generation small-block V-8 engine for use in GM’s line of full-size trucks and SUVs. The project will support 870 jobs at Tonawanda Propulsion, including 177 jobs that were deemed at risk. Empire State Development will provide up to $16.96 million in performance-based Excelsior Jobs Program tax credits in return for investment commitments to move the project forward.
“General Motors has been a major manufacturer and one of the largest employers in Western New York for years. This impressive project demonstrates how public/private partnerships can help companies like General Motors expand their operations while supporting jobs in Upstate New York,” Governor Hochul said. “Today’s $888 million investment is great news for the hundreds of workers at the plant and builds on New York’s manufacturing legacy by providing world-class products to the global market. I look forward to seeing New York’s partnership with GM bring the next generation of automotive technology to its Tonawanda plant and I thank them for their tremendous support and belief in Western New York.”
The project at the 2995 River Road plant includes the purchase and installation of new, state-of-the-art machinery and equipment, and facility renovations. The project is expected to start in July and be complete in 2027.
GM’s Tonawanda Propulsion Plant has been a cornerstone of Western New York’s manufacturing landscape for 87 years. Over the past 15 years, GM has invested more than $1.5 billion into its manufacturing operations across the state, including $300 million in the last five years alone. The Tonawanda facility currently employs 870 individuals, with hourly workers represented by UAW 774. This long-standing presence, combined with sustained economic investment, underscores GM’s significant and ongoing impact on the region’s economy and labor workforce.
General Motors’ Tonawanda Engine Plant Director Tara Wasik said, “This investment marks an exciting new chapter for our plant. We’re proud to help GM continue supporting the Western New York community and our dedicated team members across the state.”
Empire State Development President, CEO & Commissioner Hope Knight said, “Governor Hochul has put a strong emphasis on growing New York’s manufacturing sector, and it’s paying off. General Motors investing hundreds of millions of dollars in new machinery at its Tonawanda plant is a huge win for Western New York’s long running automotive industry. The entire region will benefit from the retention of hundreds of production and skilled trades jobs.”
UAW Region 9 Political Director, Wence Valentin III said, “As a proud UAW Local 774 member with 25-years seniority as a skilled trades Sheetmetal worker, former Local Union President and current UAW Region 9 Political Director, I have seen firsthand what disinvestment has done to Tonawanda and WNY communities. Many good paying union jobs I grew up on have been lost as our community has been devastated. Today, I am extremely pleased GM has decided to announce an investment of $888 million dollars supported by $16.96 million from NYS Empire State Development’s Excelsior Jobs tax credit program into the GM Tonawanda Plant. This investment gives UAW Local 774 and our Tonawanda and WNY community a chance to thrive. I congratulate the membership and leadership at UAW Local 774 led by Chairperson Micheal Grimmer and President Teddy Maldonado Jr for a job well done. They have helped secure a livable future for working people in Tonawanda and WNY for generations to come!”
Tonawanda Propulsion, represented by UAW Local 774, will continue to produce the fifth generation of GM’s V-8 engine while the plant prepares for the next generation’s start of production in 2027.
New York Power Authority President and CEO Justin E. Driscoll said, “GM’s continued investment in its Tonawanda plant reflects the success of New York’s efforts to grow the state’s manufacturing industry. NYPA hydropower has supported the site’s operation for years, and GM’s decision to invest an additional $888 million to produce a new generation of engines builds on the Power Authority’s commitment to strengthen Western New York’s economy.”
GM’s Tonawanda site is supported by 22.3 megawatts of low-cost Niagara hydropower provided by the New York Power Authority (NYPA). NYPA leverages low-cost hydropower allocations for associated job and capital investment investments, supporting New York’s growing clean energy economy. Low-cost Niagara hydropower is available for eligible companies located within a 30-mile radius of the Power Authority’s Niagara Power Project and in Chautauqua County.
New York State Department of Labor Commissioner Roberta Reardon said, “It is clear that automobile manufacturing will continue to play an integral role in New York State’s economy, and General Motors has long been a vital partner in this region. This crucial investment serves to both keep a longstanding employer in Western New York while supporting the dedicated automotive workforce as they gain the training and skills necessary to use advanced equipment.”
State Senator Sean Ryan said, “The GM plant has been a fixture of the Western New York community for nearly a century, and it remains an integral part of our regional economy to this day. I commend General Motors for reaffirming their commitment to Tonawanda with this investment that will keep hundreds of good-paying union jobs in Western New York. I am proud that New York State is stepping up to assist with keeping these jobs in our community.”
Assemblymember William Conrad said, “”General Motors is such a valuable presence here in the Town of Tonawanda, New York State must do what it can to support GM’s ability to invest in its long-term success and continue innovating in the automotive field. Tax credits can be an effective tool in retaining important corporate partners – and this is an example of how. As one of our key River Road manufacturers, GM’s stability and growth are good for our economy and good for our workforce. I am pleased to help champion this state partnership.”
Erie County Executive Mark C. Poloncarz said, “Erie County remains a great place to do business and this exciting announcement reaffirms that. General Motors will be investing hundreds of millions of dollars at the Tonawanda plant, preparing it to produce the next generation V8 engine and continuing GM’s long history of quality automotive production in Tonawanda. This investment underscores the faith that GM has in Erie County and our world-class workforce, knowing that the job will be done properly here in Tonawanda as always. The next generation V8 will soon be here, the future is bright and I look forward to many more years of a strong relationship with GM.”
Tonawanda Town Supervisor Joseph Emminger said, “I want to thank General Motors for this commitment and their previous major investments in Tonawanda Powertrain. The plant is truly a regional asset with employees from across Western New York and the economic impact is felt well beyond the Town’s borders. This significant investment by General Motors is another sign of their confidence in their workforce, Town of Tonawanda, and the region.”
