Investment in Tonawanda GM plant brings new generation

A multimillion dollar investment into the General Motors Powertrain Plant in Tonawanda was made public this week. GM announced that it would invest hundreds of millions of dollars to upgrade the facility so it can produce the next generation engine used in Chevrolet models.
This news will breathe new life into the Tonawanda plant. This will also make it possible for workers that were let go in the past to come back. Rep. Louise Slaughter (D-NY), chairwoman of the House Committee on Rules, congratulated GM on its plans to upgrade.
'This is great news for Tonawanda and great news for GM,' Slaughter said. 'Over a year ago, Congress was deciding if we would step in to help GM and to me, it was a no-brainer. Our investment to keep an American icon afloat wasn't about Detroit, it was about Tonawanda. The men and women of this plant have proven their value time and time again and today's announcement is another testament to our local workforce. I applaud GM for recognizing your great work and look forward to the growth of this incredible facility.'
The announcement affirms the competitiveness of the Western New York plant and ensures it will have new work well into the future as it manufactures this new engine. GM is upgrading in order to produce the next generation, fuel-efficient, four-cylinder Ecotec engine.
Currently, GM makes four-cylinder L850 engines, which are used in the Chevrolet Cobalt, certain versions of the Chevrolet Malibu and certain Pontiac models. GM also makes four and five cylinder engines for other vehicles.
In December 2008, Congress debated the auto bailout, which was signed by President Obama later that month. During this time, Slaughter debated the rule on the Auto Industry Financing and Restructuring Act.
'The U.S. automobile industry is one of the largest sectors of our economy,' Slaughter said. 'Auto companies directly or indirectly support over four million American jobs and provide nearly one million retirees with pensions and health care benefits. In Western New York alone, the auto industry supports over 12,000 workers, and 13,000 retirees.'
According to the United Auto Workers officials, the Tonawanda Plant currently employs 600 hourly workers. About 375 workers are on indefinite layoff and available to be called back to work. With the new investment, it may be possible to bring employees who were let go back to work.
In 2007, GM invested $100 million into the plant to produce a 4.5-liter diesel engine as a premium option in Chevy Silverado and also in GMC Sierra pickup trucks. GM rolled the last V-8 engines off the line that December, which resulted in 150 layoffs.
'It can bring back all these people that would be let go,' said Victoria Dillon, Slaughter's press secretary. 'This is certainly good news for Tonawanda [and] for the area.'
Even though the auto industry has been hit hard by the economy, things are beginning to look up for GM.
'[GM] is such a great piece of pride for the area,' Dillon said.
Dillon added that that this shows 'the hard work ethic [this area] has.'

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