General Motors invests $ 100 million in two plants in the U.S. to increase transmission production

General Motors announced on Thursday that it will invest $ 100 million in two of its U.S.-based plants to increase production of 10-speed automatic transmissions found in two of its popular pickups.

The company is allocating $ 93 million to its plant in Romulus, Michigan, which will increase “machining capacity”, according to a statement. It is also investing $ 7 million in a plant in Bedford, Indiana, to increase metal smelting capacity.

The investments are aimed at increasing the production of transmissions used in Chevrolet Silverado and GMC Sierra pickups, the company said.

“Demand for our Chevrolet Silverado and GMC Sierra pickups remains very strong and we are taking steps to increase the availability of our trucks to our dealers and customers,” said Phil Kienle, GM Vice President, Labor Relations and Manufacturing, North America , said in a statement.

The Michigan plant builds V-6 engines and 10-speed transmissions for GM’s Chevrolet, Buick, GMC and Cadillac vehicles, the company said, while the aluminum smelter facility in Indiana produces transmission housings, converter housings, heads and small gas engine blocks.

The investments take place amid temporary shutdowns at three General Motors assembly plants until mid-March, due to the global scarcity of semiconductor chips. The closings are aimed at ensuring that the company has enough chips to produce its most profitable pickups and SUVs.

Global automakers are expected to lose about $ 60 billion in sales this year due to scarcity. 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 the Buick Encore, Cadillac XT4, GMC Terrain and Chevy Equinox and Trax crossovers.

– CNBC’s Mike Wayland contributed to this report.