GM Invests Big in Canadian V-8 Engine Production

General Motors has announced a substantial investment of about $505 million for the St. Catharines Propulsion plant in Canada to produce its next-generation V-8 engines. These new small-block engines will also be manufactured at the Tonawanda Propulsion factory in Buffalo, New York, and at Flint Engine Operations in Flint, Michigan. The sixth-generation V-8 is set to debut in the 2027 Chevy Silverado, which is expected to be unveiled later this year.

GM is clearly committed to producing V-8 engines. After previously announcing an $888 million investment in the Tonawanda Propulsion plant for its next-gen small-block engine last year, the automaker is further solidifying its focus on eight cylinders. Today, GM Canada shared that it will invest CAD $691 million (USD $505 million) into the St. Catharines Propulsion plant located in Ontario, Canada, to manufacture the new sixth-generation V-8 intended for GM’s full-size trucks and SUVs.

General Motors Canada

According to GM, preparations are already underway at the factory with new equipment arriving now. Meanwhile, the St. Catharines site will continue producing the fifth-generation V-8 while it gets ready for the new engine model. In addition to Tonawanda and St. Catharines facilities, GM plans to also manufacture these sixth-gen V-8s at Flint Engine Operations in Michigan, which received a significant $500 million boost in 2023.

GM indicates that this large investment into engine production will help satisfy strong demand for their full-size trucks. While GM does not separate sales by engine type, last year they sold 577,434 gas-powered Chevy Silverados and 348,222 gas-powered GMC Sierras in the U. S., with a considerable number likely equipped with V-8 engines. This figure doesn’t even include over 315,000 full-size SUVs sold across three brands by GM last year; again, many of those were likely powered by V-8s.

General Motors Canada

The upcoming V-8 engine will be featured in future versions of both the 2027 Chevy Silverado and GMC Sierra as well as models like the Chevy Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade. GM promises enhancements in performance along with better fuel efficiency.

Additionally, GM has invested CAD $343 million into their Oshawa Assembly site located in Ontario to support production of next-generation trucks like the Silverado 1500 and Silverado HD. In this announcement, GM mentioned they’re still considering potential opportunities for their CAMI Assembly plant situated in Ingersoll, Ontario-currently inactive since October 21st after they ceased production of the electric Chevy Bright Drop van that only saw sales of 4,971 units throughout 2025.

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Caleb Miller started writing about cars when he was just 13 years old and fulfilled his dream of working for a car magazine after graduating from Carnegie Mellon University and joining Car and Driver’s team. He has a passion for unique vehicles and hopes one day to own something quirky like a Nissan S-Cargo while being an avid fan of motorsports.

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