GM Pumps Brakes On EV Motor Production, Invests Nearly $1 Billion In V-8 Engines

American auto giant General Motors is shifting its focus away from electric vehicle motors and back toward torque and horsepower.

GM said on Tuesday that it is scrapping its $300 million EV motor production plan at its Tonawanda engine plant in Buffalo, New York, and will instead invest $888 million in producing the sixth generation of V-8 engines, The Wall Street Journal reported. V-8 engines are typically used in full-size trucks, SUVs, and high-performance sports cars, such as the Chevrolet Corvette. The Detroit-based auto manufacturer hopes to roll out production of the new engines at the Buffalo plant in 2027.

The automaker is returning to focus on gas-powered engines as demand for EVs falls short of expectations, and state and federal governments ease pressure on requiring EV production. Last week, New York said it would pause penalties for shortfalls in EV production for two years, according to Reuters. The Republican-led U.S. Congress is also poised to overturn the Biden administration’s move that allowed around a dozen blue states, including New York, to ban the sale of new gas-powered cars by 2035.

GM said the new generation of V-8 engines will improve performance while reducing emissions. The $888 million investment also includes updating machinery, equipment, tools, and facilities, according to the WSJ. New York Democratic Gov. Kathy Hochul said the investment will support 870 jobs, including protecting nearly 180 jobs believed to be at risk. The state government will also hand out $16.96 million in tax credits to GM in return for the investment in New York.

Get 40% Off New DailyWire+ Annual Memberships

GM’s massive investment in New York also comes as President Donald Trump pushes auto manufacturers to produce more vehicles and parts in the United States. GM CEO Mary Barra touted the commitment in Buffalo as a way for the company to invest in American manufacturing. In April, following Trump’s tariff on foreign auto imports, GM announced that it would ramp up production of light-duty trucks at its assembly plant in Fort Wayne, Indiana.

A few weeks later, the auto company said it would cut back on production at its truck plant in Ontario, Canada, likely resulting in around 750 workers getting laid off.