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General Motors has announced it will invest $890 million in its powertrain facilities, part of which will go towards development of a new generation of powerful and efficient small-block V8 engines. The new engines will be E85 compatible, will use aluminum blocks and will get direct-injection technology. They will also get a new type of combustion system design. All of these updates will result in "unprecedented" improvements in fuel economy.

Updates to powertrain facilities will be made at five locations: Tonawanda, NY; St. Catherines, Ontario; Defiance, Ohio; Bedford, Indiana and Bay City, Michigan. GM says more than 1,600 jobs will be added or retained due to the investment.

There's no word on exactly what vehicles will get the new engines, but its likely they will arrive in GM's trucks, as well as a new generation of spots cars and luxury cars, ranging from the Corvette, to the Camaro, to the Cadillac CTS-V.

More: GM Spending $890 Million on New Engines, Including Direct-Injection Aluminum V8s on AutoGuide.com
 
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