By Mark Scott
Buffalo, NY – General Motors is dropping plans to manufacture a V-8 engine for its luxury cars.
The automaker had announced in January 2007 that the engine would be made at the Tonawanda Powertrain plant. GM was planning to spend $300 million on renovations at the plant and was scheduled to begin manufacturing the engine sometime in 2009.
But UAW Local 774 President Peter Masich tells WBFO News that plant officials began informing employees Thursday morning that the engine line was being dropped.
"There's no longer a great demand for eight cylinder engines," Masich said. "The new CAFE (mileage per gallon) standards that were recently passed also instigated this decision."
Masich says the decision affects 150 laid off employees who were scheduled to be called back to begin making the V-8 engine. He says he does not anticipate any further job losses.
It was announced last June that the Powertrain plant would begin manufacturing a new diesel engine. Other union officials say that's not affected by today's decision.
The Tonawanda plant employs 1,800 workers.