GM invests $494 million in next-gen Ecotec engine

General Motors said it will invest more than $494 million in three U.S. plants to produce the next generation of its fuel-efficient Ecotec engine.

The move marks GM's focus on fuel consumption and emissions reduction across its portfolio.

The company will invest $425 million in its Tonawanda plant for the capacity to make 370,000 next-gen Ecotec engines per year, as well as another $59 million in its Defiance plant (capacity: 188,000) and $10.5 million in its Bay City plant to make the engine's connecting rod.

"The investment in state-of-the-art four-cylinder engines is another example of GM's commitment to replace larger-displacement engines with more compact, advanced four-cylinder engines that optimize fuel savings and performance," said Denise Johnson, GM vice president of labor relations, in prepared remarks.

The investment is specifically for two models of the Ecotec engine, which use direct fuel injection, variable valve timing and turbocharging to save energy.

The current Ecotec model is used in the Buick LaCrosse, Chevrolet Equinox and GMC Terrain, and is available in 2.0-, 2.2- and 2.4-liter displacements.

This post was originally published on Smartplanet.com