GM To Put Nearly $1 Billion More Into Production of Internal Combustion Engines

Don’t write off the internal combustion quite yet. Despite its goal of an all battery electric vehicle portfolio by 2035, General Motors Co. announced Friday almost a billion dollars in new manufacturing investments—most of which is related to production of new internal combustion engines.

GM said it is investing $918 million in four U.S. plants in Flint, Mich., Bay City, Mich., Rochester, N.Y. and Defiance, Ohio. Of that total, $854 million will go towards preparation to produce the company’s sixth generation Small Block V-8 engine at the four facilities. The remaining $64 million is earmarked for the Rochester and Defiance facilities for castings and components to support EV production, GM said in a release.

“Today we are announcing significant investments to strengthen our industry-leading lineup of full-size pickups and SUVs by preparing four U.S. facilities to build GM’s sixth generation Small Block V-8 engine,” said Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability in a statement. “The teams in Rochester and Defiance are also leading our transformation to an all-electric future,” Johnson added. “Their flexibility to build components for both internal combustion and electric vehicles highlights why our manufacturing team is second to none.”

Here’s how the plant investments break down:

• Flint Engine Operations: $579 million to prepare the plant to assemble GM’s sixth generation family of Small Block V-8 gas engines along with the related block, crank and head machining. Work at the facility will begin immediately. Flint will continue building the 3.0L turbo-diesel during the facility renovations. GM’s 3.0L diesel is used in a variety of light-duty truck applications.
• Bay City GPS: $216 million to prepare the facility to build camshafts, connecting rods and block/head machining supporting future V-8 production at Flint Engine Operations.The plant builds engine components for Chevrolet, Buick, GMC and Cadillac vehicles.
• Defiance Operations: $55 million total investment. $47 million to prepare the facility to build a variety of block castings to support future V-8 engine programs. $8 million to build a casting development cell for castings to support future EV strategies.
• Rochester Operations: $68 million total investment. $12 million will be invested to prepare the facility to build intake manifolds and fuel rails for the future V-8 production at Flint Engine Operations. $56 million for the production of battery pack cooling lines for EV production.

The new plant investments were hailed by UAW president Ray Curry who said in a statement, “Our union celebrates the announcement of these new investments into our GM facilities, which will benefit our members at Locals 659 (Flint, Michigan), 362 (Bay City, Michigan), 211 (Defiance, Ohio) and 1097 (Rochester, New York).The skill and dedication of UAW members are a key part of GM’s success, and this investment recognizes that our members will remain a vital part of GM’s future.”

Indeed, GM’s plant investments solidifying union jobs at those four plants come as Curry is locked in a contentious run-off election against reform presidential candidate Shawn Fain. Ballots in the UAW’s first open election are due Feb. 28. Previously, the union’s national officers were chosen by delegates.

The open election is part of a 2020 U.S. Justice Department settlement to resolve a corruption investigation.

For GM, the additional investments to bolster internal combustion engines are aimed at supporting its new line of pickup trucks and SUVs. Those are the automaker’s main profitmakers, providing cash and capital the company can use to develop the company’s future battery-electric cars and trucks.