Photo: Chevrolet
A global semiconductor chip shortage is forcing General Motors to build certain 2021 light-duty full-size pickup trucks without their fuel management module, which negatively impacts fuel economy. Without this module, models equipped with the company’s 5.3-liter EcoTec3 V8 unit will average one mile per gallon less than before.
According to spokeswoman Michelle Malcho, all trucks are still built as GM attempts to protect some of its most profitable models from losing momentum in terms of sales. However, Malcho declined to say whether this decision will actually impact volume in any way, reports Reuters.
“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,” she wrote in an email. She also stated that this chip shortage won’t have a major impact on the carmaker’s U.S. corporate average fuel economy (CAFE) numbers.
“We routinely monitor our fleet for compliance in the U.S. and Canada, and we balance our portfolio in a way that enables us to manage unforeseeable circumstances like this without compromising our overall (greenhouse gas) and fuel economy compliance,” she added.
GM was already anticipating the chip shortage to cost them up to $2 billion in earnings this year, although they also expect global supplies to return to normal by the second half of 2021.
Meanwhile, Ford finds itself in a similar position, with the Blue Oval expecting profits to take a $2.5 billion hit after being forced to cut back production for the F-150 pickup.
So why is this happening? Well, there are several factors at play. Mostly, it’s because carmakers are now being forced to compete for chip supplies with an already battered consumer electronics industry. This issue has already forced GM to stop production for the 2021 Camaro at its Lansing Grand River assembly plant.
In the end, while this setback might not cause most buyers to give up on owning a Chevy Silverado or GMC Sierra, some will surely reconsider their position once faced with the possibility of owning a new truck that’s not as fuel-efficient as it should be.
Furthermore, it's surprising that GM isn't telling buyers that they'll be able to bring their "affected" 2021 light-duty full-size trucks into the shop free of charge, in order to get that fuel management module installed when it becomes available. Hopefully, that's what it plans on doing.
“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,” she wrote in an email. She also stated that this chip shortage won’t have a major impact on the carmaker’s U.S. corporate average fuel economy (CAFE) numbers.
“We routinely monitor our fleet for compliance in the U.S. and Canada, and we balance our portfolio in a way that enables us to manage unforeseeable circumstances like this without compromising our overall (greenhouse gas) and fuel economy compliance,” she added.
GM was already anticipating the chip shortage to cost them up to $2 billion in earnings this year, although they also expect global supplies to return to normal by the second half of 2021.
Meanwhile, Ford finds itself in a similar position, with the Blue Oval expecting profits to take a $2.5 billion hit after being forced to cut back production for the F-150 pickup.
So why is this happening? Well, there are several factors at play. Mostly, it’s because carmakers are now being forced to compete for chip supplies with an already battered consumer electronics industry. This issue has already forced GM to stop production for the 2021 Camaro at its Lansing Grand River assembly plant.
In the end, while this setback might not cause most buyers to give up on owning a Chevy Silverado or GMC Sierra, some will surely reconsider their position once faced with the possibility of owning a new truck that’s not as fuel-efficient as it should be.
Furthermore, it's surprising that GM isn't telling buyers that they'll be able to bring their "affected" 2021 light-duty full-size trucks into the shop free of charge, in order to get that fuel management module installed when it becomes available. Hopefully, that's what it plans on doing.
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