GM to invest $890M in engines, keeping 1,600 jobs

DETROIT (AP) — General Motors will invest $890 million at five factories to upgrade its V-8 engines to make them more fuel efficient, preserving or creating about 1,600 jobs.

The automaker was to announce the investments Tuesday at the factories, including one in Canada, in St. Catherines, Ontario. The others are in New York, Indiana, Ohio and Michigan.

The spending, which has been in the works for some time, will help GM meet government fuel economy standards that become fully effective in 2016.

Spokesman Tom Wilkinson said the investments will help the company boost fuel economy of its pickups, sport-utility vehicles and high-performance cars. The new engines will have aluminum blocks and more efficient technology that injects fuel directly into the combustion chambers.

The factories in New York and Ontario will make the next generation V-8 engines with aluminum blocks and direct fuel injection; the other plants will make components for the engines.

GM would not give details of the fuel economy improvements. Federal corporate fuel economy standards call for a 35.5 miles-per-gallon fleet average within six years, up nearly 10 mpg from current standards.

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