General Motors plans to announce Tuesday that it will spend $890 million to retool five engine and component plants as the automaker uses its growing cash reserves to increase investment in new products.
Media reports say the upgrades will help the automaker build more fuel-efficient engines and will create or retain about 1,600 jobs. The reports say the St. Catharines, Ont., plant will receive a $235 million investment.
Nearly half of the money — $400 million — will be spent revamping G.M.’s engine plant in Tonawanda, N.Y., affecting 710 jobs. An engine plant in St. Catharines, Ontario, will receive a $235 million investment.
The automaker also plans to spend $32 million to update its Bay City plant, $115 million for its Defiance, Ohio, factory; $111 million for Bedford, Ind., and $235 million in St. Catharines, Ontario. All build powertrain components.
“It’s great news for our workforce and community,” said Wayne Gates, president of Canadian Auto Workers Local 199.