General Motors Co. GM will invest $888 million in its Tonawanda Propulsion facility, where the company manufactures V-8 engines that power its SUVs and Full-Size Trucks.
What Happened: The investment follows the company's plans to provide support for the production of its sixth-generation V-8 engines, an official statement released by GM said on Tuesday.
The investment marks the "single largest investment" by GM in an investment plant, the statement said. The investment involves improvements to the plant with new equipment, facility renovations, new machinery and new tools.
"Our significant investments in GM's Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S," company CEO Mary Barra said in the statement.
The plant will continue to produce the fifth-generation engines until the sixth-generation V-8 production begins in 2027 at the Buffalo, New York, facility, the statement said.
Why It Matters: The investment comes at a time when GM EVs are experiencing a surge in sales in the U.S. BEVs (Battery Electric Vehicles) produced by the company accounted for over 14.4% of all EVs sold in the country in April.
GM is also steadily gaining on Elon Musk's Tesla Inc. TSLA, which remains the EV market leader in the U.S., as more former Tesla owners are switching to Cadillac EVs.
Elsewhere, General Motors is pushing for California to revert its EV Mandate, which aims to phase out ICE (Internal Combustion Engine) powered vehicles by 2035.
Price Action: GM currently trades for $49.09 at market close, according to Benzinga Pro data.
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