On Friday, General Motors Corp. (GM) announced that it would invest $100 million in its Tonawanda engine plant to produce an all-new, 4.5-liter V- 8 Duramax high-output diesel engine for the Chevrolet Silverado and GMC Sierra light-duty pickup trucks and the HUMMER H2. GM stated that the engine fuel efficiency improves by 25% when compared with gasoline engines.
GM stated that the investment includes a 200,000-square-foot facility renovation, new machinery, equipment, and special tooling to bring diesel engine technology to New York. In addition to the $100 million facility investment, GM will invest an additional $41 million for vendor tooling, containers, and investments at other locations necessary to support the Tonawanda operations.
Construction is slated to begin later this year and production of the 4.5-liter V-8 diesel engine is scheduled to begin in the fourth quarter of 2009, GM said. The project will retain about 150 hourly jobs.
The Detroit, Michigan-based GM said that environmental benefits of the new engine include a 13% reduction in CO2 versus gasoline engines, and at least a 90% reduction in particulates and NOx when compared to diesel vehicles today.
The investment announced today is in addition to a $300 million investment GM announced in January for production of an all-new, DOHC V-8 engine to power GM's luxury cars and SUVs. Production of that engine also begins in 2009.
GM is transforming its product portfolio to reduce fuel consumption and emissions, and the 4.5-liter V-8 diesel is an integral part of that transformation, as well as a component of GM's strategy to diversify vehicle energy sources, said John Buttermore, GM Powertrain VP of global manufacturing.
The GM Powertrain Tonawanda plant management and UAW Local 774 leadership successfully negotiated a competitive operating agreement that improves operational effectiveness.
The 4.5-liter V-8 Duramax high-output diesel engine will be GM's first engine to use a selective catalytic reduction NOx after-treatment system with a diesel particulate filter to help achieve the Tier 2 Bin 5 and LEV 2 emissions standards.
It will be compliant in all 50 states, and fulfil multiple vehicle applications with ratings in excess of 310 horsepower and 520 lb.-ft. of torque.
Currently, the Tonawanda engine plant builds the 2.2-liter Ecotec engine, the Inline 4- and 5- cylinder engines, the 3.5- and 3.9-liter high value V-6 engines, and the 8.1-liter big block V-8 engine.
GM is currently trading at $34.41, up 81 cents or 2.41%, on the New York Stock Exchange.
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