GM preps for new engines, 8-speed transmission

General Motors is spending $332 million to upgrade powertrain plants in three states to build a new eight-speed automatic transmission, a new V6 and a new family of small-displacement gasoline engines.

The plants are in Indiana, Michigan and Ohio. GM is also adding $46 million to an earlier $600 million program to upgrade powertrain plants in Saginaw and Romulus, Mich.

The new GM-designed eight-speed transmission will be used in several models by the end of 2016, the automaker said. This is not the TL80 eight-speed automatic that will be used in the redesigned 2014 Cadillac CTS, a GM Powertrain spokesman said. Aisin builds that transmission.

Candidates for the new fuel-saving transmission include GM's redesigned full-size pickups and SUVs, and the new Chevrolet Corvette Stingray. Those vehicles are launching with a six-speed automatic.

GM is spending $55.7 million on its transmission plant in Toledo, Ohio, and $29.4 million on its casting plant in Bedford, Ind., for the new eight-speed transmission. The Toledo plant, already building six-speed automatics, will also likely produce the eight-speed.

The small gasoline engine comes from a joint venture between GM and Chinese automaker Shanghai Automotive Industry Corp. (SAIC) that was announced in October 2011. GM and SAIC cooperated on the design of the engine. It will be built in three- and four-cylinder configurations with displacements ranging from 1.0 to 1.5 liters. The engine is designed to be lighter than today's fours and use technologies such as direct fuel injection, turbocharging and the ability to burn alternative fuels for higher fuel economy and lower emissions. Another design goal is to minimize noise and vibration.

The small engine will be ideal for GM's subcompact cars, such as the Chevrolet Spark and Sonic. It could also be used to turn a generator in hybrid powertrains such as in the Chevrolet Volt and Cadillac ELR. Rival Ford Motor Co. is adding a turbocharged 1.0-liter three-cylinder engine to the Fiesta in the United States later this year.

For the new inline engine, GM is spending $215 million at an engine plant in Flint, Mich., $12.5 million at a plant in Bay City, Mich., and $19 million at the Bedford casting plant. Some of the money in Flint will be used to upgrade tooling used to now build the high-feature 3.6-liter V6 used in the Cadillac CTS and large crossovers such as the Buick Enclave.

GM will build the new V6 at its engine plant in Romulus, Mich. A GM spokesman would not say if the new engine is a variation of an existing engine or a fresh design. The Romulus plant already builds V6s used in GM's full-size pickups and vans.

The automaker had previously committed to spending $600 million at Romulus and a casting plant in Saginaw, Mich., for the new V6. GM is adding $46 million to the upgrade budget for the two plants for the new V6. It is also spending $31.7 million at the Bay City plant to build parts for the new engine.

By Dale Jewett