For those who think the H2...

[f5fstop]

...will get a Duramax sometime in the next five years....better think about this article for a moment.

GM to Invest in N.Y. Diesel Factory
Detroit Free Press

By Katie Merx

Jan. 17, 2007

General Motors Corp. plans to announce a significant investment in its Tonawanda, N.Y., engine plant this morning.

A company spokeswoman declined to share details of the announcement. But the Buffalo News and Buffalo Business First reported that the 70-year-old engine plant has been vying for a $300-million investment that would prepare it to build diesel engines for pickups and SUVs.

The Tonawanda powertrain plant has about 2,000 hourly workers and builds more than 1 million engines a year, GM's Web site says.

Tonawanda builds a four-cylinder Ecotec engine; in-line four- and five-cylinder engines for pickup trucks and the Hummer H3; a V6 for sedans, and an 8.1-liter V8 for marine and recreation uses.

Diesel engines ? along with electric, hybrid, fuel-cell and biodiesel powertrains ? are expected to be an area of increased focus for GM in the next few years as it works to develop alternatives to vehicles powered by gasoline-burning engines.

Indeed, the need to develop alternative sources of vehicle propulsion to be competitive in the global auto industry was expected to be a point of focus when GM CEO Rick Wagoner spoke late Tuesday at the Automotive News World Congress at the Hyatt Regency in Dearborn. Wagoner was scheduled to speak shortly before 9 p.m.

He was expected to push for government tax credits and fuel subsidies to promote the development of alternative fuel sources.

A GM spokesman said Wagoner was also expected to reiterate that 2006 was a year of great progress in the automaker's financial turnaround and that he is optimistic that retail auto sales in the United States and globally will grow in 2007 and 2008.

Separately, GM's finance chief said the world's largest automaker is legitimately interested in a stake in Proton Holdings Bhd, the Malaysian state-owned automaker.

GM is in discussions on the matter, Chief Financial Officer Fritz Henderson told reporters Tuesday night in Dearborn. Henderson said he hasn't been involved in the talks.