General Motors Canada is investing $691 million in its St. Catharines, Ont., propulsion plant to support production of the sixth generation of the company’s V-8 engine.

The investment comes as automakers, including GM, face criticism for reducing their Canadian production and footprint amid pressure from the White House to reshore plants in the U.S. Automakers are also grappling with increased costs tied to tariffs and changing North American and global market conditions. GM is among a number of automakers that have curtailed production paused or scrapped plant projects or closed plants.

The new engine will power GM’s high-demand full-size trucks and SUVs, with equipment for the project already arriving onsite as the plant continues producing the current fifth-generation V-8 while preparing for the next generation launch, said the company.

The investment positions St. Catharines as the third GM propulsion facility to produce the new engines, alongside plants in Buffalo, N.Y., and Flint, Mich., creating an integrated manufacturing footprint aimed at meeting North American demand for full-size pickups, GM added.

“Today’s announcement confirms St. Catharines will play a key role in one of our core vehicle programs for years to come, and it reflects General Motors’ confidence in the St. Catharines team and their proud 74-year legacy of powering our most popular vehicles,” said Jack Uppal, president and managing director at GM Canada.

The next-generation V-8 is expected to deliver stronger performance through new combustion and thermal-management innovations. The funding will support new machinery, equipment and tooling, along with significant facility upgrades at the plant, said GM.

The announcement builds on GM Canada’s broader manufacturing investments, including $343 million committed to Oshawa Assembly for next-generation gas-powered full-size pickup production, according to the company. In total, the automaker has invested about $3.3 billion in its Canadian operations since 2020, underscoring its long-term commitment to domestic manufacturing.

But GM has faced intense criticism for ceasing production of its BrightDrop electric parcel-delivery van altogether and idling the plant in Ingersoll, Ont., where it was assembled. While announcing the investment in the St. Catharines engine plant, GM said it is still assessing the Ingersoll facility’s future.

GM previously disclosed that the BrightDrop termination cost the company US$1.8 billion in non-cash impairments. The closure was part of US$6 billion in total expenses related to the company’s EV pullback in Canada, the U.S. and Mexico. Scrapped BrightDrop-related contracts and settlements with suppliers accounted for the remaining $4.2 billion of the $6-billion total,

The pullback stemmed from U.S. President Donald Trump’s revised EV policies and reduced demand for the vehicles, according to the automaker.

Photo: CNW Group/GM Canada