Buffalo, N.Y. -- General Motors yesterday announced plans to invest $888 million to make new V8 engines at its Tonawanda Propulsion plant in Western New York.

According to New York Governor Kathy Hochul, the project will support 870 jobs at the factory, including 177 jobs that were deemed "at risk." Empire State Development,  New York's economic growth corporation, will provide nearly $17 million in performance-based tax credits. The investment includes new state-of-the-art machinery, equipment, tools, and facility upgrades.

GM "has been a major manufacturer and one of the largest employers in Western New York for years," Governor Hochul said. "This impressive project demonstrates how public/private partnerships can help companies like General Motors expand their operations while supporting jobs in Upstate New York."

GM's sixth-generation V8 engines, used in full-size trucks and SUVs, are expected to deliver improved performance with better fuel economy and reduced emissions. The company says new combustion and thermal management developments are key factors driving the improvements.

The project is expected to start this July and be completed sometime in 2027.

GM says the investment will be the single largest the company has ever made in an engine plant, and Tonawanda will become just the second GM propulsion plant to make the new V8 engines. The factory will still make fifth-generation V8 engines while the plant is upgraded.

In January 2023, GM announced a $579 million investment in its Flint Engine plant in Michigan to assemble the company's sixth generation family of small block V8 gas engines along with the related block, crank and head machining.

The Tonawanda facility currently employs nearly 900 workers, with hourly employees represented by UAW 774.

"This enormous investment is exactly what we've been calling for," said UAW Vice President Mike Booth. "Skilled UAW members, like members of UAW Local 774, make GM's profits, so it's great to see the company investing back into its union workforce so we can keep building quality, world-class products."

GM's Tonawanda Propulsion Plant has been in operation for 87 years. The governor's office said GM has invested more than $1.5 billion into its manufacturing operations across the state over the last 15 years.

GM CEO Mary Barra says the latest investment shows the company's commitment to "strengthening American manufacturing and supporting jobs in the U.S."

In a statement, UAW President Shawn Fain said, "It's time for Ford and Stellantis to learn from GM ... GM is showing that it makes good business sense for major corporations to reverse course on the destructive race-to-the-bottom trade policies that have wreaked havoc on workers and destroyed blue-collar towns and cities across America."