General Motors (GM) has announced a significant shift in its production strategy, moving away from electric vehicle (EV) motors to focus on traditional V-8 engines. The company revealed on Tuesday that it will cancel its $300 million plan to produce EV motors at the Tonawanda plant in Buffalo, New York. Instead, GM will invest $888 million to develop a new generation of V-8 engines, which are commonly found in trucks, SUVs, and high-performance cars like the Chevrolet Corvette. Production of these new engines is expected to start in 2027.
This decision comes as demand for electric vehicles has not met expectations. Additionally, both state and federal governments are easing their push for EV production. Recently, New York announced it would delay penalties for companies that fall short of EV production goals for two years. Meanwhile, the U.S. Congress is considering actions to reverse policies that would ban the sale of new gas-powered cars by 2035 in several states, including New York.
GM’s new investment is aimed at enhancing engine performance while also reducing emissions. The funding will go toward updating machinery, equipment, and facilities at the Buffalo plant. New York Governor Kathy Hochul noted that this investment will help sustain approximately 870 jobs, including nearly 180 positions that were at risk.
This move also aligns with a broader trend in the auto industry, as President Donald Trump has been encouraging manufacturers to produce more vehicles domestically. GM’s CEO, Mary Barra, highlighted the importance of this investment for American manufacturing. In recent months, GM has also ramped up truck production in the U.S. and made adjustments to its operations in Canada in response to tariffs on foreign auto imports.
Overall, GM’s shift back to V-8 engines reflects changing market dynamics and regulatory environments, as the company adapts to new consumer preferences and economic conditions.