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Cuomo: General Motors to invest $334 million in Western New York & Rochester

Press Release

Wed, Dec 14th 2016 10:40 pm

More than 1,200 jobs supported in Tonawanda, Lockport & Rochester

Project supported by up to $7 million in Empire State Development capital grants and Excelsior Tax Credits; investments will provide new machinery and equipment for engine and component production at New York plants

Gov. Andrew M. Cuomo on Wednesday announced General Motors, a global automotive company, would invest $334 million in new machinery and equipment at its Tonawanda, Lockport and Rochester plants to produce future engine and component products. The project will support 67 new jobs in Tonawanda and retain 1,194 positions at the three plants.

Empire State Development will provide up to $7 million in capital grants and Excelsior Tax Credits in return for job and investment commitments to move the project forward. General Motors maintains 4,200 total manufacturing jobs in New York state.

"For generations, General Motors has been an important economic engine in New York, providing world-class products to the global market and good-paying jobs to New Yorkers," Cuomo said. "By reinforcing our important partnership with GM, we are not only helping to grow its operations, but building on its legacy in New York. This is another example of our commitment to creating opportunity for the local economy by ensuring good-paying manufacturing jobs stay at home, and I look forward to seeing the next generation of automotive technology produced right here in New York."

At the GM Tonawanda Engine plant, approximately $295.9 million will be spent by General Motors on equipment for future engine production. At the GM Rochester Components Holdings plant, approximately $5.9 million will be spent on future powertrain components, and $31.86 million will be invested into the GMCH Lockport plant for future cooling components.

The projects are expected to be complete in December 2018.

GMNA Manufacturing and Labor Relations Vice President Cathy Clegg said, "GM remains committed to investing in its U.S. operations. With these latest projects we have announced investments of $2.2 billion in 2016, allowing us to support the production of future engines and vehicles."

Empire State Development President, CEO and Commissioner Howard Zemsky said, "General Motors is investing hundreds of millions of dollars in new machinery and equipment at its Tonawanda, Lockport and Rochester plants is a huge win for Western New York's vital automotive industry and for the entire region, which will benefit from the retention and creation of hundreds of production and skilled trades jobs."

Tonawanda Engine Plant

Tonawanda Engine produces award-winning engines for General Motors' most desired products, including the Ecotec 2.5L/2.0L Turbos, EcoTec3 Family of engines and the Small-Block Gen 5 Engine. The Tonawanda Engine Plant was built in 1937, designed by Albert Kahn - "The Architect of Detroit" - as a 1-million-square-foot manufacturing facility for engines and axle assemblies. It began production in 1938 on Chevrolet's straight-six "Stove Bolt" engine.

Today, Tonawanda is made up of three plants: the original Plant 1 where the Gen 5 engines are built; the 1-million-square-foot Plant 4, opened in 1941, and later converted into a training center for workers and the warehousing and shipping depot; and the 1-million-square-foot Plant 5, opened in 2001, where the Ecotec 2.0-liter turbo and 2.5-liter four-cylinder engines are built.

GM has invested $2.6 billion into Tonawanda Engine over the past decade.

Rochester Components Plant

The GMCH Rochester plant specializes in engine management systems and related products, originally operating as Rochester Carburetor. After being acquired by GM, it was subsequently spun off as part of Delphi in 1999. In 2009, following Delphi's and GM's emergence from bankruptcy, the plant was reacquired by GM as a wholly owned subsidiary (along with Delphi's Lockport plant) to ensure the continued and uninterrupted production of components and systems to its global car and truck operations.

Lockport Components Plant

GMCH Lockport was founded in 1910 as the Harrison Radiator Company for the purpose of designing, manufacturing and selling automotive radiators and components. Since that time, the company has flourished into a lean manufacturing site that produces a wide compliment of Powertrain Cooling and HVAC components and systems. With 1,400 employees, the site is focused on continuous improvement through a joint team process between UAW Local 686, Local No. 55 and management that benefits their employees, company, customers and the community.

Assemblyman Sean Ryan said, "General Motors has been a major manufacturer and one of the largest employers in Western New York for years. This project exemplifies what we can do when we foster partnerships between the public and private sector and make investments that benefit the local economy, attract private investment and provide good-paying jobs for the hardworking people of Western New York. This is another example of Western New York's growth and resurgence, and I thank Gov. Cuomo and General Motors for continuing this partnership that will ensure GM remains an economic powerhouse for the region."

Erie County Executive Mark Poloncarz said, "This partnership demonstrates how engaging in the private sector can help companies like General Motors expand their operations while supporting jobs in upstate New York. Today's announcement is another step in the right direction for Erie County, and I thank General Motors, as well as Gov. Cuomo, for their tremendous support and belief in our region. This project will not only strengthen our economy and support good-paying jobs, but ensure that communities like Western New York have a strong base in the manufacturing industry for years to come."

Town Supervisor Joseph Emminger said, "General Motors is a world-recognized brand that has called Western New York home for more than 75 years while manufacturing quality products and providing good jobs for our residents. The new engines manufactured in Tonawanda will be used to produce the next generation of U.S.-made vehicles and are a testament to this region's talented and hardworking workforce, as well as the town's continuing efforts to provide high-quality services at the lowest possible cost. I commend Gov. Cuomo and General Motors for strengthening its partnership with the state and look forward to its growth in the years ahead."

About General Motors

General Motors Co. and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

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