Common Motors workers work on the meeting line Friday, April 26, 2019 at Fairfax Meeting & Stamping Plant in Kansas Metropolis, Kansas. The Fairfax facility produces the Cadillac XT4 and Chevrolet Malibu.
Jim Barcus for GM
General Motors introduced on Thursday that it’ll make investments $100 million in two of its U.S.-based manufacturing vegetation to spice up manufacturing of 10-speed computerized transmissions present in two of its in style pickups.
The corporate is allocating $93 million for its plant in Romulus, Michigan, that can improve “machining functionality,” in keeping with an announcement. Common Motors can also be investing $7 million in a Bedford, Indiana, plant for elevated die casting metallic capabilities.
The investments are supposed to spice up manufacturing of the transmissions used for its Chevrolet Silverado and GMC Sierra light-duty pickups, the corporate mentioned.
“Demand for our Chevrolet Silverado and GMC Sierra full-size pickups continues to be very robust and we’re taking motion to extend the provision of our vans for our sellers and prospects,” Phil Kienle, vice chairman of GM North American Manufacturing and Labor Relations, said in a release.
The plant in Michigan builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac automobiles, the corporate mentioned, whereas the Indiana aluminum die casting facility produces transmission casings, converter housings, heads, and small fuel engine blocks.
The investments come amid temporary shutdowns at three of Common Motor’s meeting vegetation via mid-March on account of a world scarcity of semiconductor chips. The closures are supposed to make sure the corporate has sufficient chips to provide its extra worthwhile pickup vans and SUVs.
International automakers are expected to lose some $60 billion in gross sales this 12 months as a result of scarcity. The chips are used for areas starting from infotainment techniques to extra conventional elements akin to energy steering. They’re additionally utilized in shopper electronics.
The impacted vegetation 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.