Uh oh, the 2021 Chevy Silverado is the latest truck model to struggle with the semiconductor chip shortage. The Chevy Silverado 1500 and heavy-duty Silverado models could face production delays as the chip shortage reaches critical levels.
The 2021 Chevy Silverado might be delayed
As a result, General Motors is now canceling weekend overtime shifts at the Fort Wayne Assembly plant that builds these truck models. Potential buyers may have trouble finding the new truck and large SUV models that they want.
Some customers have decided that they will wait it out until they can get the vehicle with all the bells and whistles they want. However, others are settling for cheaper, used options without the features they want.
The auto industry could lose up to $60 billion in sales during the first half of the year due to delays caused by the chip shortage. Mary Barra, GM Chairman, and CEO mentioned that GM could lose about two billion.
How will the Chevy Silverado cope?
At first, General Motors began taking steps in an attempt to sidestep the chip shortage by building the 2021 Chevy Silverado without the chips until more become available.
The semiconductor chip is used in the engine to save fuel. Without the chips, the trucks will be getting about one less mpg. This is a pretty big deal based on how many miles you drive.
Now GM is taking things a step further by shutting down or slowing down production at plants that manufacture vehicles that aren’t as popular. They are saving the chips for the best-selling trucks and SUVs instead.
GM confirmed that they will cancel most of its summer changeover closures in an attempt to make up for the production delays. They aren’t alone.
Ford and Stellantis are also being affected. Ford is also planning on working through usual summer shutdowns to try and catch up on production, but Stellantis hasn’t commented on its plan yet.
Why is there a chip shortage?
The semiconductor shortage is being caused by high demand. The computer chips are needed to power new electronics in newer vehicles. They also enable computing power for personal electronics like the insanely popular PS5.
Plus, the pandemic caused a rise in the need for computers and phones as people began working from home and their kids started attending school remotely.
The 2021 Chevy Silverado and other trucks won’t simply wait for more chips. Auto manufacturers are taking action. Next week, executives from the Detroit Three are scheduled to meet with White House representatives to discuss the shortage.
It could be beneficial to have more semiconductor chips manufactured in America, so the United States doesn’t have to rely heavily on Asian companies to produce them.
One looming concern involves the worry that the semiconductor shortage could delay economic recovery. Auto manufacturers are already struggling to catch on on production after Coronavirus (COVID-19) related shutdowns.