General Motors employees work on the assembly line on Friday, April 26, 2019 at the Fairfax assembly and stamping plant in Kansas City, Kansas. The Fairfax facility produces the Cadillac XT4 and the Chevrolet Malibu.
Jim Barcus for GM
General Motors announced Thursday that it will invest $ 100 million in two of its U.S.-based manufacturing plants to increase production of 10-speed automatic transmissions found in two of its popular pickups.
The company is allocating $ 93 million to its Romulus, Michigan plant, which will increase “machining capacity,” according to a statement. It is also investing $ 7 million in a plant in Bedford, Indiana, to increase die-casting capabilities.
Investments are aimed at increasing production of the transmissions used for its Chevrolet Silverado and GMC Sierra light pickups, the company said.
“Demand for our full-size Chevrolet Silverado and GMC Sierra pickups remains very strong and we are taking steps to increase the availability of our trucks to our dealers and customers,” said Phil Kienle, vice president of GM North American Manufacturing and Labor Relations. , he said in a statement.
The Michigan plant builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac vehicles, according to the company, while Indiana’s die-cast aluminum facility produces casings of transmission, converter housings, heads and small blocks of gas engines. .
Investments occur amid temporary shutdowns at three of General Motors ’assembly plants until mid-March due to the global shortage of semiconductor chips. The enclosures are meant to ensure the company has enough chips to produce its most profitable trucks and SUVs.
World carmakers are expected to lose about $ 60 billion in sales this year due to the shortage. Chips are used for areas ranging from entertainment and entertainment systems to more traditional pieces like power steering. They are also used in consumer electronics.
The affected plants are found in Kansas; Ontario, Canada; and Potosí San Luis, Mexico. They produce the Chevrolet Malibu and Buick Encore sedan, Cadillac XT4, GMC Terrain and Chevy Equinox and Trax.
– CNBC Mike Wayland has contributed to this report.