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GM Set To Invest $890 Million To Upgrade V-8 Engines

Tue, 04/27/2010 - 4:05am

DETROIT (AP) — General Motors Co. says it will spend $890 million at five factories to upgrade its V-8 engines to make them more fuel efficient.

The automaker says the moves will preserve or create roughly 1,600 jobs at factories in Tonawanda, N.Y.; St. Catherines, Ontario; Bay City, Mich.; Bedford, Ind.; and Defiance, Ohio.

GM was to formally announce the investments at the plants Tuesday morning.

Spokesman Tom Wilkinson says the investments had been planned for a long time as GM tries to raise the fuel economy of its pickup trucks, sport utility vehicles and high-performance cars.

Factories in Tonawanda and St. Catherines will make the next generation V-8 engines with aluminum blocks and direct fuel injection, while the other plants will make components for the engines.

 

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