Tonawanda Gets $300 Million To Build GM's Newest Engine

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For Release: January 17, 2007

Tonawanda Gets $300 Million To Build GM's Newest Engine

Buffalo, NY ? General Motors today announced it will invest $300 million in its GM Powertrain Tonawanda engine plant to manufacture an all-new, technically advanced dual overhead cam (DOHC) V-8 engine, slated to begin production here in 2009.

?This all-new engine will play a critical role in GM?s exciting future luxury vehicle portfolio,? said John Buttermore, GM Powertrain vice president of global manufacturing. ?As one of the most technically advanced engines in GM, its power and smoothness will be among the world?s best, and yet more fuel efficient and environmentally friendly.?

The investment includes renovation to part of the plant, new machinery and tooling to support the new engine production. Renovations are expected to begin this fall. As a result of this new work, Tonawanda will retain 150 jobs.

?On behalf of General Motors, I commend the United Auto Workers, UAW Local 774, and local and state leaders for helping to provide the business case and securing the necessary incentives to support this investment and the future of the GMPT Tonawanda engine plant,? said Bill Shaw, GM Powertrain manufacturing manager.

New York Governor Elliot Spitzer said, ?GM?s $300 million investment is welcome news for Western New York and exhibits the company?s faith that issues affecting the business climate of this state can and will be successfully confronted. GM?s willingness to invest in the area is an early sign of the state?s economic development prospects and is a testament to the great value of our highly skilled workforce.?

Today?s announcement brings GM?s total investment in the GMPT Tonawanda plant to $1.5 billion over the last ten years.

?This is a significant investment from the standpoint of expanding production here at Tonawanda and providing greater job security for UAW Local 774?s members whose dedication helped win this new work,? said Wally Wedington, UAW Local 774 shop chairman.

?General Motors? continuing investment in Tonawanda and Erie County demonstrates the strength of our partnership,? said Joel Giambra, Erie County executive. ?We are thrilled to be able to protect jobs at the GM Powertrain plant through cooperation with GM management and UAW Local 774 leadership.?

The GM Powertrain Tonawanda engine plant has produced nearly 67 million engines since its opening in 1938. The plant employs 1,860 people and provides an annual payroll of $198 million. GMPT Tonawanda currently produces the 4-cylinder, Ecotec 2.2-liter engines for the Chevrolet Cobalt, HHR and Malibu and the Saturn Ion; High Value, V-6 3.5- and 3.9-liter engines for the Chevrolet Impala and Monte Carlo, and the Pontiac G6; Inline 4- and 5-cylinder engines for the Chevrolet Colorado, GMC Canyon and the Hummer H3; Vortec 8100 8.1-liter engines for the Chevrolet Kodiak, GMC TopKick and sold outside GM for various marine applications.

General Motors Corp. (NYSE: GM), the world?s largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 284,000

people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, 9.1 million GM cars and trucks were sold globally. More information on GM can be found at www.gm.com.