General Motors Corp. announced it will spend $300 million to upgrade its Tonawanda, NY, engine plant to build two new V-6 engines. GM plans to build a 3.9-liter V6 engine and a previously-announced 3.5-liter V6 engine at the plant, to be used in GM vehicles beginning in the 2006-model year. The investment includes facility upgrades, tooling, and the purchase of new equipment to enable production flexibility to produce 3.5-liter and 3.9-liter engines in a single plant. Instal-lation of machinery and equipment will begin during the third quarter of 2003, with completion expected during the fourth quarter of 2004. The move will preserve approximately 720 hourly and salaried jobs at the plant, which employs 3,000 hourly and 340 salaried employees.

Originally posted on Fleet Financials