GM invests $425 Million in Tonawanda Engine plant to boost capacity image

General Motors Co will invest $425 million in its Tonawanda Engine to boost the production of the Ecotec 4-cylinder engines that will power the 2013 Chevrolet Malibu and 2013 Cadillac ATS.

“I said two years ago that this was happening, and here we are today,” said plant manager Steve Finch.

Tonawanda Engine Plant Manager Steve Finch said the goal for the next-generation engines is to delight customers.

From 650 employees a year ago with 130 on permanent layoff, Tonawanda has brought back all laid-off workers and added 54 additional jobs, 21 from GM Components Holdings plants and 33 new-hires. More hiring is expected at Tonawanda with the addition of shifts for the Ecotec engines and the upcoming launch of the GEN V V8 engine line in Plant 1.

In conjunction with the unveiling of the new engine lines, GM said it will add about 800 jobs when it launches a third shift early next year at its Arlington Assembly plant in Texas.

The Detroit automaker said the shift is expected to begin in first quarter 2013, and the staffing ramp up will begin in the fourth quarter this year.