TONAWANDA, N.Y. (AP) — General Motors has abandoned plans to build a V-8 engine for luxury vehicles at a plant near Buffalo because of new federal mileage requirements and high gasoline prices cutting into consumer demand.
GM Powertrain spokeswoman Sharon Basel says the decision will affect between 130 and 150 laid-off workers who were expected to be brought back to make the dual overhead cam engine, but will not affect current employment levels at the Tonawanda plant.
She says plans to retool the plant to build the new V-8 Duramax clean diesel engine for GM's light duty pickup trucks are still on track.
Employees were told about the decision Thursday morning. The plant employs 1,850 hourly and salaried workers.
