General Motors announced on Thursday that it will invest $100 million in two of its U.S.-based manufacturing plants to boost production of 10-speed automatic transmissions found in two of its popular pickups. Recently some GM plants were shuttered due to the global chip shortage so this is seen as a boost to the business which has been struggling with its vehicle output. Many auto makers are expecting to make losses this year so an investment of this size is a big deal for US manufacturers. GM is looking to increase its machining and die-casting capabilities in two of its plants.
The investments come amid momentary shutdowns at three of General Motors’ assembly plants through mid-March due to a worldwide shortage of semiconductor chips. The closures are intended to ensure the company has enough chips to produce its more profitable pickup trucks and SUVs. The investments are intended to highten production of the transmissions used for its Chevrolet Silverado and GMC Sierra light-duty pickups.
The company is allocating $93 million for its plant in Romulus, Michigan, that will increase “machining capability,” according to a statement. It is also investing $7 million in a Bedford, Indiana, plant for increased die-casting metal capabilities. “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, vice president of GM North American Manufacturing and Labor Relations, said in a release.
GM owns a plant in Michigan which builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC, and Cadillac vehicles. The Indiana aluminum die-casting facility produces transmission casings, converter housings, heads, and small gas engine blocks. Global automakers are expected to lose some $60 billion in sales this year due to the shortage. The chips are used for areas ranging from infotainment systems to more traditional parts such as power steering. The affected 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.
In closing, GM is making massive investments to ensure that their most popular models will be available for consumers. The global chip shortage has made it difficult to source parts and chips for vehicles so more investments are being made to buy capable machinery to produce autos domestically. GM is investing in two of its most capable US plants with the hope that they can keep up with the demand of American consumers.
