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GM to invest $893 Million in Producing a More Fuel-Efficient V-8

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On: Wed, Apr 28, 2010 at 4:49PM | By: Sherry Christiansen

GM to invest $893 Million in Producing a More Fuel-Efficient V-8

The green movement is really taking off in the U.S. today. Every day we read about new and exciting concepts for more fuel-efficient technology in car news.

Most recently GM has announced plans to invest in as many as five different manufacturing plants in order to build more fuel-efficient aluminum block V-8 engines in future GM pickup trucks.

Many were wondering what would become of the heavy duty trucks, with maximum towing capacity, as the government steps up to regulate automakers to halt manufacturing the gas guzzlers in the future. Emissions standards have recently been set for automakers for the production of more fuel-efficient vehicles next year, and to continue to improve ratings up to 2016.

GM is getting ahead of the game in the design of green cars (and trucks)- again. Now GM’s best selling trucks, such as the GMC Sierra 1500 and Chevrolet Silverado 2500 HD, will have a shot of competing with other fuel-efficient vehicles and to stay in compliance with recent government mandates.

The new V-8 engine will be designed to use direct injection and an innovative combustion system, according to spokesperson Sharon Basel; "The next-generation engines will also be lighter. GM will build them exclusively from aluminum, compared with the current versions' aluminum and iron makeup. All of the engines will be able to run on E85 ethanol." The goal of the new engine design is to improve fuel economy and achieve an average of 35.5 MPG by 2016.

The investment is projected to retain or create approximately 1,600 jobs across five factories in Bay City, Michigan; Defiance, Ohio; Bedford, Indiana; Tonawanda, New York; and St. Catherine’s, Ontario. Many of the new jobs are expected to be filled by laid-off GM workers.

So far, General Motors has announced plans for investing in 20 facilities since the restructure project in July of last year (in response to financial crisis resulting in bankruptcy last spring). The most recent announcement is by far the largest to date, and brings GM's total funds committed to $1.5 billion.

GM has taken its place in line beside Ford, Nissan, Tesla, and Fisker in applying for low interest loans under the Department of Energy’s programs for the development of greener vehicles.

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