Global chip shortages are becoming more severe.
The automotive industry has become reliant on computer chips or semiconductors, particularly since cars today boast a lot of tech.
The current chip shortage in the world has caused production to stop at several automakers. GM recently announced a temporary shutdown of its Lansing, Michigan factory that produces the Chevrolet Camaro and the Cadillac CT4/CT5 due to the chip shortage.
Reuters reports GM will build select 2021 full-size trucks that are free from the coveted Active Fuel Management (AFM), also known as cylinder activation. Michelle Malcho, GM spokesperson, confirmed that the affected models of the EcoTec3 V8 engine with a 5.3-liter EcoTec3 engine will experience lower fuel consumption (by one mile per gallon), due to the absence of AFM.
Malcho, in keeping with America’s obsession to trucks reiterates that GM still builds all trucks and that the company is protecting its production of pickups because it’s one the most profitable models of the company.
However, Malcho declined to provide any comments to Reuters regarding the number of vehicles that were affected by the Production change. The change will apply to these GM trucks through the 2021 model year.
The global chip shortage and relative production shut downs will have an impact on the economy and employment. It is expected that around 216,000 vehicles will be lost, which would amount to approximately $2 billion in earnings.
Although it is not clear if the industry can bounce back this year or not, the supply shortfall is expected to continue into the second half.