| General Motors Corp. has announced on Thursday | | | | General Motors is also now expected to announce the |
| that it was planning to invest in its engine plant in | | | | assignment of a new diesel engine line to the Town of |
| Tonawanda, New York. The automaker however, did | | | | Tonawanda's Powertrain plant this Friday. The factory |
| not release further details. | | | | issued a bid for the new line, but several other plants |
| Union representatives and state and local officials | | | | showed strong interest as well. |
| have been trying to secure production of GM's 4.5 liter | | | | In May, Erie County officials approved a $350,000 |
| diesel engine for some pickup trucks and sport utility | | | | sales tax break to clinch the GM investment in the |
| vehicles for the 2010 model year. | | | | plant. Recent amendments to the |
| Senator Hillary Rodham Clinton has written to GM | | | | payment-in-lieu-of-taxes agreement between the Erie |
| Chief Executive Rick Wagoner supporting efforts for | | | | County Industrial Development Agency and America's |
| production of the engine at the upstate New York | | | | largest domestic automaker's plant on River Road |
| plant. In the letter the Senator praised the talent of local | | | | resulted in an additional reduction of nearly $8 million in |
| workers and said the new diesel line would represent | | | | payments over a 25-year period. |
| a significant investment in the local economy. | | | | According to GM Spokesperson Mary Ann Brown, |
| It can be remembered that GM has earlier announced | | | | those savings could play a key role in bringing the new |
| that the company would be relocating production and | | | | line to Tonawanda, since government cooperation is |
| jobs out of New York State. The resulting layoffs | | | | one of the key factors looked at in making the final |
| would which was slated to begin immediately and end | | | | decision. |
| in late 2008 was set to affect an estimated 500 local | | | | New York Gov. Elliot Spitzer, Erie County Executive |
| residents. | | | | Joel Giambra and Town of Tonawanda Supervisor |
| Rumors of the plant's closure have prompted Senator | | | | Ron Moline will join representatives from GM, the |
| Clinton and Congressman John McHugh to send a | | | | United Auto Workers local union and the Empire State |
| letter to General Motors CEO Wagoner urging him not | | | | Development Corp. at the announcement, scheduled at |
| to shutdown the plant and inviting him to communicate | | | | the plant for 2 p.m. |
| with officials about possible ways to keep the plant in | | | | If the plant is awarded the new 4.5-liter diesel engine |
| Massena. Senator Clinton's office has since been in | | | | line, production would begin in 2009 and the engines |
| contact with local, state and community officials to | | | | would appear in certain 2010 models of trucks and |
| offer her help. | | | | SUVs. |
| In January, GM said it would invest $300 million in the | | | | The plant employs 1,860 people and currently makes |
| plant to make new V-8 engines for its luxury vehicles, | | | | engines (as well as parts like GMC brake rotor) for |
| slated for production in 2009. That announcement | | | | several GM vehicles, including the Chevrolet Cobalt, |
| brought GM's total investment in the plant to $1.5 billion | | | | HHR, Malibu, Impala and the Saturn Ion. |
| over the last decade. | | | | |