GM to invest $890 million in US plants

General Motors has confirmed plans to invest more than $890 million in five North American plants to produce a new generation of fuel-efficient truck and car engines.  The company estimates that the investment will create or retain more than 1,600 jobs at the plants. Two plants will support the engine productionÔÇöTonawanda in New York, which will receive an investment of $400 million, resulting in more than 710 jobs; and St. Catharines, Ontario, which will receive $235 million, resulting in approximately 400 jobs. Three plants will support engine casting and component production, which are: Defiance, Ohio, due to benefit from $115 million, which will support up to 189 jobs; Bedford, Indiana, receiving an investment of $111 million resulting in about 245 jobs; and Bay City, Michigan, in which GM plans to invest $32 million, supporting over 80 jobs. The next generation engines will rely exclusively on aluminum engine blocks, which are lighter and therefore contribute towards improved fuel efficiency. In addition to being E85 ethanol capable, the engines are being designed with the capability of meeting increasingly stringent emissions standards now and in the future. The plant investments will include facility renovation and installation of new engine machining and assembly equipment, as well as special tooling designed to boost efficiency and ensure engine quality. At the casting facilities, investments will include expansion of semi-permanent mold and precision sand casting technologies. ÔÇ£GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building and selling the worldÔÇÖs best vehicles,ÔÇØ said Mark Reuss, president of GM North America, commenting on the announcement. ÔÇ£These latest investments show our commitment to improving fuel economy for buyers of every GM car, truck and crossover and giving them the best possible driving and ownership experience.ÔÇØ In the nearly 10 months since GM emerged from its government-financed bankruptcy, the auto maker says it has restored or created 9,100 jobs and invested $2.3 billion into US and Canadian factories. Last week the company confirmed it has now repaid its $6.7 billion loan in full. GM's sales were up 17 percent though March this year compared with the same period in 2009. Headquartered in Detroit, Michigan, GM employs 217,000 people worldwide. Operating in 140 countries, the company produces cars and trucks in 34 countries.