Governor Paterson Announces GM to Invest $400 Million in Tonawanda Powertrain; 713 Jobs Created or Retained

ALBANY, NY (04/27/2010)(readMedia)-- Governor David A. Paterson today announced that General Motors (GM) has chosen the Tonawanda Engine plant to invest $400 million and add 713 jobs to produce a new generation of fuel efficient small block truck and car engines.

"Today's announcement is vital to Western New York's automobile industry and to New York manufacturing as a whole, and demonstrates GM's confidence in our State," Governor Paterson said. "This is a major investment in the region's economy and ensures the long-term future of the Tonawanda engine plant. As always, we will maintain ongoing dialogue with GM regarding its numerous New York State operations."

"GM is investing in our plants, restoring and creating jobs and making progress toward our vision of designing, building and selling the world's best vehicles," said Mark Reuss, President of GM North America. "These latest investments show our commitment to improving fuel economy for buyers of every GM car, truck and crossover and giving them the best possible driving and ownership experience."

New York State will contribute $6 million to the project through an Empire State Development Upstate Blueprint Fund capital grant. The Erie County IDA will provide an additional $880,000 in sales tax abatement.

GM Tonawanda Engine plant is one of the largest engine plants in the world and has produced 70 million units since 1938. Earlier this year, Governor Paterson and GM announced that the company would invest $425 million to retrofit Tonawanda Powertrain to manufacture the new 2.0L and 2.5L Ecotec engines, retaining 470 jobs at the plant and countless jobs at local businesses and suppliers. Together, these announcements position the plant as a leader in GM's transformed product portfolio.

About General Motors

General Motors, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 217,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at www.gm.com.

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The following statements were provided in support of the Tonawanda Powertrain:

Senator Charles E. Schumer said: "GM's comeback as a job creating powerhouse in Western New York is now in high gear. Bringing the V-6 and V-8 here puts the Tonawanda plant, and its world-class workforce, at the cutting edge of the new American auto industry for years to come. And kudos to the Erie County economic development officials, the UAW and Governor Paterson for their effective teamwork."

Senator Kirsten Gillibrand said: "This is great news for Tonawanda and Western New York. Upstate New York and our manufacturing base is poised to take full advantage of the new energy revolution. This investment by GM will help retain and create hundreds of good-paying manufacturing jobs right here at home and spur economic activity across the region."

Congresswoman Louise Slaughter said: "If I was GM I would invest in Tonawanda's Powertrain plant too. Today's announcement of hundreds of jobs coming to Western New York reaffirms what we all have known for years, we have the best workers. At the federal level, we took some heat for voting to bail out General Motors, but I knew we weren't just helping GM, I was investing our Western New York workforce and our investment is paying huge dividends. I'm pleased that our State and local officials including the Governor have pledged their support as well. Now when you buy a GM vehicle with an Ecotec engine, it won't just be made the USA, it'll be made in Tonawanda."

Senator William T. Stachowski, Chair of the Senate Commerce, Economic Development and Small Business Committee, said: "I commend General Motors for its decision to select Tonawanda Powertrain for the production of new V-6 and V-8 engines as well as Governor Paterson for his efforts throughout this process. This investment will directly help build up our region. The impact of every job created or saved in Western New York is invaluable to our local economy and in order to achieve a real long-term recovery, we must keep these jobs here. I am very pleased that area residents will benefit from these new employment opportunities and I am certain that GM will prosper as a result of our excellent workforce."

Senator Michael H. Ranzenhofer said: "The Tonawanda Powertrain plant is the right choice for the production of the new V6 and V8 engines. General Motors' decision is a testament to the dedicated and hard-working nature of our Western New York workforce. The investment in the Tonawanda Powertrain plant allows Western New York to compete in a 21st century global economy and ensures the plant's future in Tonawanda."

Assemblyman Robin Schimminger said: "This is great news for the area. Western New York has been hit hard by the high unemployment rates, but GM's investment in Tonawanda Powertrain is one of the first of hopefully many steps forward on the road to economic recovery. The $400 million investment, aided by State and local incentives, will not only retain hundreds of jobs, but also create hundreds of jobs. That's a huge win for the region. We're glad to see that General Motors has as much pride and faith in the Tonawanda plant and its workforce as we have here in the 140th district."

Erie County Executive Chris Collins said: "GM's latest investment in Tonawanda Engine is an investment in our local community, and is a reflection of the facility's strong management and dedicated, skilled workforce. I am pleased the Erie County Industrial Development Agency recently approved a new round of tax abatements in an effort to show community support for GM and to provide the necessary incentives to make this project a reality."

Empire State Development Chairman & CEO designate Dennis M. Mullen said: "The Tonawanda facility has positioned itself as an efficient and productive component of GM's portfolio, therefore securing these new manufacturing lines. The automotive industry is vital to Western New York and with our partners at the Erie County IDA and NYPA we've been successful in working with GM to bring new opportunities to the region. This expansion of GM Powertrain's workforce is great news and I want to personally thank GM for its continued commitment to the Tonawanda facility and our region."

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