Buffalo News (New York), November 11, 2006, Saturday

Copyright 2006 Buffalo News
Buffalo News (New York)

Distributed by McClatchy-Tribune Business News

November 11, 2006 Saturday

SECTION: BUSINESS AND FINANCIAL NEWS

HEADLINE: Area GM plant may get diesel engine line: Automaker seeks tax breaks if Tonawanda facility is to be awarded the $21 million investment

BYLINE: Fred O. Williams, The Buffalo News, N.Y.

BODY:
Nov. 11--General Motors' engine plant in the Town of Tonawanda is competing for a $21 million investment by the automaker, a spokeswoman confirmed -- without saying exactly what the potential expansion would be.
There's speculation that it could be a diesel engine line.
Changing standards for diesel fuel are making it easier for automakers to meet emissions standards, leading to speculation that GM will produce diesel engines for some of its vehicles.
The company has applied to the Erie County Industrial Development Agency for tax breaks connected to the possible investment in Tonawanda, GM communications manager Doris Powers Toney said. At least one other site in North America is also being considered for the new task, she said.
No time frame has been set for a decision on the investment, she said.
GM employs 1,900 people at the engine plant on River Road, about 1,620 of them hourly workers. The plant's major engines, all introduced within the last 10 years, are the "Ecotec" 2.2 liter four-cylinder; a V-6 for passenger cars, and inline 4- and 5-cylinder motors for trucks. The site also makes a V-8 that's available on some full-size trucks and SUVs.
The U.S. Environmental Protection Agency required fuel producers to cut the sulfur content of diesel in a rule that took effect in June. The move makes it easier for automakers to meet emissions requirements for highway vehicles, spurring a crop of diesel-powered vehicles starting in 2007.
GM has said it is working on diesel engine technology with Japanese partner Isuzu.
"Diesel has tremendous advantages," said Arthur Wheaton, an instructor at Cornell University's School of Industrial and Labor Relations in Buffalo. "It gets a lot better fuel economy for the same torque."
Some diesels rival the fuel efficiency of gas-electric hybrids. But the fuel, popular in Europe, has faced environmental hurdles in the U.S.
e-mail: fwilliams@buffnews.com
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