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
Rising US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
CRU: Brazil proposes quotas on steel imports, with tariff back up
Brazil’s chamber of foreign trade, Camex, has approved quotas on imports of 11 steel products and a 25% levy on shipments 30% above a product’s average import volume between 2020 and 2022.
Leading nonres indicator falls to more than three-year low
An important economic indicator for the nonresidential construction industry declined in March to its lowest point in more than three years.
Active rig counts slip in US and Canada
The number of active rigs in the US is now at the lowest level seen in over two years, while Canadian rigs have fallen to a four-month low.
GrafTech continues to bleed red on weak demand
GrafTech is reporting weak near-term demand for graphite electrodes as economic uncertainty constrains steel production globally.