TONAWANDA, NY-General Motors is putting an additional $100 million into its diesel truck plant in this town just north of Buffalo, keeping 150 jobs in place. “General Motors has been part of the Western New York economy for almost 70 years,” Governor Eliot Spitzer says. “The company’s expanded investment in its Tonawanda plant will help ensure that relationship continues for many years to come.”

GM will receive a $1 million capital grant from the Empire State Development Corp. The Erie County Industrial Development Agency will provide sales tax abatements and a customized PILOT (Payment in Lieu of Taxes) program. The Erie County Workforce Investment Board will help with worker training.

The factory will produce a new high-tech diesel engine for light duty trucks, which will improve fuel economy by 25% and cut CO2 emissions by 13%. Its workers are in UAW Local 774.

This more recent announcement comes after the January deal that got GM to invest $300 million into the Tonawanda Powertrain facility, saving 1,500 jobs.

“At a time when we are looking to create jobs Upstate, it’s also important to preserve existing ones,” says Daniel Gunderson, Upstate chairman of the ESDC. “This is a major strategic capital investment by GM and its especially significant given the global competition in the automobile industry today.”

The Tonawanda plant is one of the most productive in the country, producing almost 67 million engines since its 1938 opening. It employs 1,860 people with an annual payroll of $198 million.

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