ROMULUS, Mich.—General Motors Co. will invest $385 million to prepare its Romulus Engine plant for production of an all-new, fuel efficient engine, creating about 320 jobs.

The Michigan plant, which currently employs 840 people on two shifts,  produces a number of V6 and V8 engines that power GM full-size vans, SUVs and pickups, the Chevrolet Express, Silverado, Tahoe, Suburban and Colorado, GMC Savana, Sierra, Yukon, Canyon, and Cadillac Escalade.

Romulus-built engines also are used for marine and industrial applications.

The investments will support tooling and equipment upgrades.