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The computer chip shortage is pushing General Motors to get creative so that it can continue to manufacture its profit-making new trucks and SUVs in Arlington.
The company is removing the automatic start and stop feature from a number of trucks and SUVs in its 2021 lineup. The company hasn’t said when the feature that turns a vehicle’s engine off and then on again at intersections will return.
The company is knocking $50 off of the suggested retail price of the vehicles and noted that removing the feature will result in a “minor reduction” in fuel economy. It will affect 2021 Chevrolet Tahoes, Suburbans, GMC Yukons, Yukon XLs, Cadillac Escalades, Escalade ESVs, Chevrolet Silverado 1500s and GMC Sierra 1500s produced on or after June 7, according to the company.
Only vehicles equipped with 5.3-liter and 6.2-liter V8 engines mated to 10-speed transmissions will have the feature removed.
The automaker builds full-size trucks and SUVs at its Arlington assembly plant, where it employs more than 4,000 workers. It announced earlier this month that it would accelerate deliveries of its vehicles to dealerships that have been experiencing lower than usual levels of new car inventory this year.
“By taking this measure, it will enable us to continue production of our high-demand full-size SUV and pickups as the industry continues to rebound and strengthen,” GM said in a statement.
The feature GM has decided to remove relies on chip technology that is currently in short supply.
Over the last year of the pandemic, major automakers have dealt with social distancing protocols, supply chain hiccups and other business interruptions. But the global computer chip shortage continues to weigh on the industry.
Chip production has lagged demand as computers and other devices became more popular during the pandemic. The auto industry has been particularly hard hit by the shortage as more modern vehicles rely on computer chips to power advanced features.
New car inventory decreased by 15.7% in May compared with April of this year as the chip shortage continues to affect the Dallas-Fort Worth market, according to data from automotive research firm iSeeCars. The GMC Yukon and Yukon XL, both affected by GM’s recent decision, were the second- and third-fastest-selling new vehicles in D-FW in May, according to the firm.
It’s a situation that remains fluid all over the world, according to GM.
“Our supply chain organization continues to make strides working with our supply base to mitigate the near-term impacts of the semiconductor situation. GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including our highly profitable full-size trucks and SUVs for our customers. However, the semiconductor situation continues to remain fluid globally.”
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June 30, 2021 at 03:00AM
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