(Recasts with confirmation by GM, adds details )

By Kalea Hall

DETROIT, May 27 (Reuters) - General Motors ( GM ) is

investing $888 million at a New York propulsion plant to

increase engine production, the company said on Tuesday.

The investment at the Tonawanda propulsion plant in Buffalo,

New York, first reported by Reuters, is a shift from a

previously announced $300 million commitment to make

electric-vehicle drive units at the plant.

The move is likely another sign of automakers adapting to

slower-than-expected market demand for EVs.

GM has been more adamant in staying the course on its move to

EVs than other automakers, but has also pulled back on some of

its previously announced EV investments, including selling its

stake in a battery cell plant to battery partner LG Energy.

Executives have more recently positioned the company to be

focused on adapting to customer demand for EVs, but the

automaker has also continued launching the vehicles. It now has

about a dozen EVs available in the United States.

GM committed to a $300 million investment for drive unit

production at the Tonawanda plant during the 2023 negotiations

with the United Auto Workers union. Production of the drive

units had not been launched there.