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TwitterDetroit based automaker, General Motors is planning on a massive revamp, to improve the fuel economy of its vehicles and at the same time, create jobs in its corporate units. It will invest about $494 million and create nearly 565 jobs, at three U.S. plants making its revamped four cylinder Ecotec engine.
GM is spending a major portion, $425 million of the total, and recalling 470 employees at its engine factory in Tonawanda, New York, Kimberly Carpenter, a GM spokeswoman, said today.
Investment includes renovations, machinery, equipment and special tooling in Tonawanda as well as at plants in Defiance, Ohio, and Bay City, Michigan. It will also add capacity for the next generation Ecotec engine at 370,000 per year. While a major portion of the money will be coming to Tonawanda, the automaker also plans to invest $59 million and hire 80 at its block production facility in Defiance, Ohio, and to spend $10.5 million and add 15 jobs at the Bay City, Michigan, plant that produces connecting rods for the Ecotec line.
GM to Invest in Ecotec Engines
The Ecotec engine family is known for its reliability, fuel efficiency and performance. GM Ecotec engines have been on the forefront of delivering leading edge technology including direct injection, variable valve timing and turbocharging. The current Ecotec 2.4L with direct injection and variable valve timing, was recently recognized as a Ward’s Auto World magazine’s 2010 “Ten Best Engine” for North America based on several factors, including power, fuel efficiency and new technology. The Ecotec is currently available in 2.0L, 2.2L and 2.4L displacements.
GM is transforming its product portfolio to reduce fuel consumption and emissions, and the next generation Ecotec engine is an integral part of that transformation,” Denise Johnson, GM vice president of labor relations, said in a statement. “The investment in state-of-the-art four-cylinder engines is another example of GM’s commitment to replace larger-displacement engines with more compact, advanced four-cylinder engines that optimize fuel savings and performance.” , he added.
This announcement is important since it marks the revival of manufacturing in the United States. Even though the job creation will make about half as much as the old ones, attracting new engine lines is essential for a plant to stay in business. The shrinking global car market has put more pressure on individual plants to win such projects at a time when car companies look for ways to reduce capacity and also increase productivity. One thing is for sure, this announcement will secure the longevity of Western New York’s vital automotive industry and also spike the local economy putting the Big Apple, on the big path to recovery.
It is interesting to note that the expansion comes at a time when Japanese rival Toyota – which dethroned GM as the world’s biggest automaker in 2008 – has been forced to halt production and sales of some of its most popular US models as it struggles to cope with a growing number of safety recalls. It is recalled that General Motors had to file for bankruptcy protection last year and its emergence from the financial mess with both, leaner offerings and improved operations is perhaps a lot more credible than it sounds.
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