One of the world's most popular car brands has scrapped plans to invest $300million (£222million) in its electric vehicle motor production division, while ramping up production of new petrol and diesel engines.
General Motors has abandoned its plan to invest in EV production at one of its factories and will instead invest $888million (£659million) to make new V8 engines.
GM has seen sales of its electric vehicles slow in recent years, prompting the change in production at its Tonawanda, New York, plant.
This is the biggest single investment in an engine plant by GM, as it prepares to make the sixth generation of its V8 engine.
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General Motors will be investing $888million into the development of its V8 engines
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GM confirmed that it would continue production of the fifth generation of the engine before starting the sixth generation in 2027.
The engines are used in GM's full-size trucks and SUVs, with the investment boosting machinery, equipment, tools and facility renovations.
Mary Barra, Chair and CEO of General Motors, said: "Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the US.
"GM's Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come."
Since opening almost 90 years ago, the Tonawanda plant has produced around 77 million engines for vehicles across brands including Cadillac, Chevrolet, GMC, and Buick.
Any electric vehicle sold by General Motors has a battery warranty for eight years, or 100,000 miles, whichever comes first.
As a conglomerate, General Motors sells the Equinox, Blazer and Silverado EVs through Chevrolet, and the Hummer Pickup, Hummer and Denali via GMC.
Its Cadillac brand has a number of EVs, including the Celestiq, Escalade IQ, Escalade IQL, Vistiq, Lyriq, Lyriq-V and the Optiq.
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Tara Wasik, plant director at Tonawanda, said the investment was an "exciting new chapter" for the plant and its workers.
She added: "For generations, our team has demonstrated its commitment to manufacturing excellence.
"We are grateful for the opportunity to continue supporting the Western New York community and steadfast in our mission to deliver world-class propulsion systems to our customers."
General Motors continues to deal with difficult market conditions, with President Trump's controversial tariffs on foreign vehicle exports.
General Motors' Tonawanda powertrain factory in New York
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The Detroit-based manufacturer said it would suspend exports of American-made vehicles to China after President Trump unveiled a tariff hike on the nation.
While it did not specifically mention President Trump's tariffs, it blamed "significant changes to economic conditions".
Despite the decision to axe additional funding for electric vehicles, General Motors and its partner LG Energy Solution, announced that it was developing new lithium manganese-rich (LMR) prismatic battery cells.
It is hoped the new batteries would offer more than 400 miles of electric range when used in SUVs and trucks, as well as helping to slash running costs.
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