Common Motors staff work on the meeting line Friday, April 26, 2019 at Fairfax Meeting & Stamping Plant in Kansas Metropolis, Kansas. The Fairf
Common Motors staff 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
Common 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 well-liked pickups.
The corporate is allocating $93 million for its plant in Romulus, Michigan, that can enhance “machining functionality,” in accordance with a press release. Common Motors can also be investing $7 million in a Bedford, Indiana, plant for elevated die casting steel capabilities.
The investments are meant to spice up manufacturing 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 robust and we’re taking motion to extend the provision of our vehicles for our sellers and prospects,” Phil Kienle, vice chairman 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 short-term shutdowns at three of Common Motor’s meeting vegetation by mid-March attributable to a world scarcity of semiconductor chips. The closures are meant to make sure the corporate has sufficient chips to supply its extra worthwhile pickup vehicles and SUVs.
World automakers are anticipated to lose some $60 billion in gross sales this yr as a result of scarcity. The chips are used for areas starting from infotainment techniques to extra conventional components reminiscent of energy steering. They’re additionally utilized in client 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.