General Motors staff work on the meeting line Friday, April 26, 2019 at Fairfax Assembly & Stamping Plant in Kansas City, Kansas. The Fairfax facility produces the Cadillac XT4 and Chevrolet Malibu.
Jim Barcus for GM
General Motors introduced on Thursday that it’s going to make investments $100 million in two of its U.S.-based manufacturing plants to boost production of 10-speed automated transmissions discovered in two of its well-liked pickups.
The firm is allocating $93 million for its plant in Romulus, Michigan, that may improve “machining capability,” in accordance to an announcement. General Motors can also be investing $7 million in a Bedford, Indiana, plant for elevated die casting metallic capabilities.
The investments are meant to boost production of the transmissions used for its Chevrolet Silverado and GMC Sierra light-duty pickups, the corporate stated.
“Demand for our Chevrolet Silverado and GMC Sierra full-size pickups continues to be very strong and we are taking action to increase the availability of our trucks for our dealers and customers,” Phil Kienle, vp of GM North American Manufacturing and Labor Relations, stated in a launch.
The plant in Michigan builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac autos, the corporate stated, whereas the Indiana aluminum die casting facility produces transmission casings, converter housings, heads, and small fuel engine blocks.
The investments come amid non permanent shutdowns at three of General Motor’s meeting plants via mid-March due to a world scarcity of semiconductor chips. The closures are meant to guarantee the corporate has sufficient chips to produce its extra worthwhile pickup vehicles and SUVs.
Global automakers are anticipated to lose some $60 billion in gross sales this yr due to the scarcity. The chips are used for areas starting from infotainment methods to extra conventional components similar to energy steering. They’re additionally used in client electronics.
The impacted plants are in Kansas; Ontario, Canada; and San Luis Potosí, Mexico. They produce the Chevrolet Malibu sedan and Buick Encore, Cadillac XT4, GMC Terrain, and Chevy Equinox and Trax crossovers.
— CNBC’s Mike Wayland contributed to this report.