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
Read more from Michael CowdenLatest in Steel Markets
Steady architecture billings signal improving conditions
The November ABI decreased month over month but was still the third-highest reading of the past two years.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Latin America’s steel industry grapples with declining demand, rising imports
With climbing imports and falling consumption, the Latin American steel industry has had a challenging 2024, according to an Alacero report.
CRU: Trump tariffs could stimulate steel demand
Now that the dust has settled from the US election, as have the immediate reactions in the equity, bond, and commodity markets, this is a prime opportunity to look at how a second Trump presidency might affect the US steel market.