Steel Markets
GM Keeps on Trucking Without Chips for Some Full-Size Trucks
Written by Michael Cowden
March 16, 2021
General Motors continues to crank out some full-size pickup trucks despite a microchip shortage.
The Detroit-based automaker is doing so by shipping certain vehicles without chip-containing components necessary for reducing fuel consumption, a company spokesman confirmed.
“Due to the global shortage of semiconductors impacting the global auto industry, we are making Active Fuel Management/Dynamic Fuel Management unavailable on certain 2021 model year full-size trucks,” a GM spokesman said.
Fuel economy will not be as good on those vehicles as it would have been if they had active fuel management. But GM will be able to produce the full-size trucks in question– and to consume steel for those vehicle platforms–roughly according to forecasts, he confirmed.
“By taking this measure, we are better able to meet the strong customer and dealer demand for our full-size trucks as the industry continues to rebound and strengthen,” the spokesman said.
The chip shortage has resulted in automakers taking varying degrees of downtime at assembly plants across North America. But it has not to date impacted steel prices, which remain at all-time highs, or mill lead times, which remain extended.
Strong demand stems in part from the COVID-19 pandemic, which has caused consumers to spend less on services and travel and more on steel-intensive goods such as personal vehicles and home appliances.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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