General Motors invests $100 million in 2 U.S. plants to enhance transmission production

0
116
General Motors invests $100 million in two U.S. plants to boost transmission production

Revealed: The Secrets our Clients Used to Earn $3 Billion

General Motors staff members deal with the assembly line Friday, April 26, 2019 at Fairfax Assembly & Stamping Plant in Kansas City, Kansas. The Fairfax center produces the Cadillac XT4 and Chevrolet Malibu.

Jim Barcus for GM

General Motors revealed on Thursday that it will invest $100 million in 2 of its U.S.-based factory to enhance production of 10-speed automated transmissions discovered in 2 of its popular pickups.

The business is assigning $93 million for its plant in Romulus, Michigan, that will increase “machining capability,” according to a declaration. It is likewise investing $7 million in a Bedford, Indiana, plant for increased die-casting metal abilities.

The financial investments are meant to enhance production of the transmissions utilized for its Chevrolet Silverado and GMC Sierra light-duty pickups, the business stated.

“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, stated in a release. 

The plant in Michigan constructs V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac cars, the business stated, while the Indiana aluminum die-casting center produces transmission housings, converter real estates, heads and little gas engine obstructs.

The financial investments come in the middle of short-term shutdowns at 3 of General Motors’ assembly plants through mid-March due to a worldwide scarcity of semiconductor chips. The closures are meant to make sure the business has sufficient chips to produce its more successful pickup and SUVs.

Global car manufacturers are anticipated to lose some $60 billion in sales this year due to the scarcity. The chips are utilized for locations varying from infotainment systems to more conventional parts such as power steering. They’re likewise utilized in customer electronic devices.

The impacted plants remain 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 added to this report.

This site uses Akismet to reduce spam. Learn how your comment data is processed.