In a move that will ultimately cost $100 million, General Motors announced plans on June 15 to begin production of a high-output diesel engine slated for use in three product lines.

Described as a 4.5-liter Duramax V8, the engine will return a 25 percent improvement in fuel efficiency and 13 percent for carbon dioxide emissions. The unit, which will go into production in the last quarter of 2009, will be used in the GMC Sierra pick-up, the Hummer H2, and the Chevrolet Silverado.

With an eye toward the strict standards for emissions that will take effect in 2010, the new GM engine will be compliant in all fifty American states. GM will refit its plant in Tonawanda, New York to handle assembly of the unit. This includes renovation of the plant's physical structure as well as installing new equipment, a move that has local government and area union leaders more than pleased.

The diesel engine announcement comes on the heels of the company's decision in January to sink some $300 million into the same plant for the production of improved V8 engines that will be used in GM luxury vehicles.

Both moves are no doubt intended to help GM's image after years of dependence on sport utility vehicles outfitted with gas-guzzling engines. The company's sales have slumped in recent months when compared to steadily improving movement of hybrids by rival automaker Toyota. GM, like other car makers, needs to respond to growing environmental concerns in order to stay competitive in the new "greener" marketplace.