General Motors is investing $ 100 million in two US plants to boost transmission production

General Motors announced on Thursday that it will invest $ 100 million in two of its US plants to boost production of 10-speed automatic transmissions in two of its popular pickups.

The company is allocating $ 93 million for its Romulus, Michigan plant, which will increase “machining capacity,” a statement said. It is also investing $ 7 million in a plant in Bedford, Indiana, for improved metal die-casting capabilities.

The investments are intended to boost production of the transmissions used for the Chevrolet Silverado and GMC Sierra light pickups, the company said.

“Demand for our Chevrolet Silverado and GMC Sierra full-size pickups remains very high and we are taking action to increase the availability of our trucks to our dealers and customers,” said Phil Kienle, vice president of GM North American Manufacturing and Labor Relations, it said in a release.

The Michigan plant builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac vehicles, the company said, while its Indiana aluminum die-casting facility produces transmission boxes, converter boxes, 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 to ensure the company has enough chips to produce its more profitable pickup trucks and SUVs.

Global carmakers are expected to lose about $ 60 billion in sales this year due to the shortage. The chips are used in areas ranging from infotainment systems to more traditional parts such as power steering. They are also used in consumer electronics.

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.

– CNBCs Mike Wayland contributed to this report.