General Motors is investing $888 million at a New York propulsion plant to increase engine production, the company said on Tuesday.
The investment at the Tonawanda propulsion plant in Buffalo, New York, first reported by Reuters, is a shift from a previously announced $300 million commitment to make electric-vehicle drive units at the plant.
The move is likely another sign of automakers adapting to slower-than-expected market demand for EVs. GM has been more adamant in staying the course on its move to EVs than other automakers, but has also pulled back on some of its previously announced EV investments, including selling its stake in a battery cell plant to battery partner LG Energy.
Executives have more recently positioned the company to be focused on adapting to customer demand for EVs, but the automaker has also continued launching the vehicles. It now has about a dozen EVs available in the United States.
GM committed to a $300 million investment for drive unit production at the Tonawanda plant during the 2023 negotiations with the United Auto Workers union. Production of the drive units had not been launched there.
