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General Motors employees work on the assembly line Friday April 26, 2019 at the Fairfax stamping and assembly plant in Kansas City, Kansas. The Fairfax plant 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 US-based manufacturing plants to boost production of the 10-speed automatic transmissions found in two of its popular pickup trucks.
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 expand its die-casting capabilities.
The investments are aimed at increasing production of transmissions used for its light-duty Chevrolet Silverado and GMC Sierra pickups, the company said.
“Demand for our full-size Chevrolet Silverado and GMC Sierra pickup trucks continues to be very strong and we are taking steps to increase the availability of our trucks to our dealers and customers,” Phil Kienle, vice president of GM North American Manufacturing and Labor Relations, said in a statement.
The Michigan plant builds V-6 engines and 10-speed transmissions for GM Chevrolet, Buick, GMC and Cadillac vehicles, the company said, while the Indiana aluminum die-casting plant produces transmission housings, converter housings, heads and small gas engine blocks. .
The investments come amid temporary shutdowns of three General Motors assembly plants until mid-March due to a global shortage of semiconductor chips. The closures are meant to ensure the company has enough chips to produce its most profitable pickup trucks and SUVs.
Global automakers are expected to lose some $ 60 billion in sales this year due to the shortage. Chips are used in areas ranging from infotainment systems to more traditional parts such as power steering. They are also used in consumer electronics.
Affected plants are found in Kansas; Ontario, Canada; and San Luis Potosí, Mexico. They produce the Chevrolet Malibu sedan and the Buick Encore, Cadillac XT4, GMC Terrain, Chevy Equinox and Trax crossovers.
– CNBC Mike Wayland contributed to this report.
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