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2021 Chevy Silverado, GMC Sierra fuel economy to go down due to global chip shortage

Production of the 2021 Chevy Silverado and 2021 GMC Sierra is continuing, but the global semiconductor chip shortage is resulting in a mid-year change. Or rather, an omission.  Basically, the availability of cylinder deactivation for the 5.3-liter V8 will be significantly reduced, resulting in a reduction of 1 mpg combined for affected models. This applies whether that engine has the six- or eight-speed automatic, as well as to both the regular Active Fuel Management and the more advanced Dynamic Fuel Management cylinder deactivation systems. DFM does remain with the pairing of 5.3-liter V8 and 10-speed automatic that comes standard on the LT Trail Boss and High Country. "Due to the micro controller shortage, the components that control AFM/DFM in the engine control module (ECM) have been removed," GM spokesperson Michelle Malcho told Autoblog. She also indicated that the engines will still have the AFM/DFM hardware in place, but that GM will not allow activation of the systems in the future with an ECM change.  Malcho also confirmed to Autoblog that the Silverado and Sierra's other engines will continue to have AFM and DFM, including the 2.7-liter turbo inline-four, 4.3-liter V6 and 6.2-liter V8. In an earlier statement to Reuters, she declined to say the volume of vehicles affected. "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," Malcho wrote Reuters in an email. The change runs through the 2021 model year, she said. Malcho told Reuters it would not have a major impact on the Detroit automaker'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 said. GM's fleetwide fuel economy in the 2018 model year was 22.5 miles per gallon and was projected to rise to 22.8 mpg for 2019, according to a report by the Environmental Protection Agency. To meet federal CAFE requirements, automakers like GM often use credits from either earlier years where they faced less stringent rules and performed better than the requirements or buy credits from other automakers. GM said last month the chip shortage could shave up to $2 billion from this year's earnings.

2020 GMC Sierra HD pricing announced

Just as with its Chevy twin, pricing for the 2020 GMC Sierra HD has been revealed. Unlike the Chevy, though, prices haven't dropped across the board. The ultimate base prices for the 2500 HD and 3500 HD are technically less than the 2019 models at $37,195 and $38,395 respectively, but that's because those are the reintroduced regular cab models. Matching up the body styles of the last year's cheapest Sierras with their new equivalents, and the prices have crept up a few hundred dollars. But the next highest trim level, SLE, drops in price by nearly $2,000 between equivalent trucks. Equivalent SLT trucks are up nearly $2,000 each, though, and the base Denalis have gone up by about $7,000. This is due in part to the 2020 Sierra Denali no longer being offered with two-wheel drive. Comparing the old and new four-wheel drive models, the price is still up by about $4,000. While the new Sierra HD is only more affordable than the last one in certain circumstances, they all feature more capability. The standard 6.0-liter gas-powered V8 makes an extra 41 horsepower and 84 pound-feet of torque than the old one for a total of 401 horsepower and 464 pound-feet of torque. The 6.6-liter diesel V8 still makes 445 horsepower and 910 pound-feet of torque, but it now gets a 10-speed automatic transmission. Maximum fifth-wheel towing has increased, too. For the 2500, that number jumps from 15,400 pounds to 18,500 in the new model. For the 3500, fifth-wheel towing goes from 23,100 pounds to 35,500 pounds for the new truck. And of course, you can get GMC's fancy MultiPro tailgate on the new Sierra HD. One final note on the Sierra HD's pricing: it has the highest base price of the full-size heavy duty trucks. The Ford F-250 Super Duty is the cheapest at $34,745 and is closely followed by the Ram 2500 at $35,090. The full range of GMC Sierra HD pricing is listed below: Sierra 2500 HD Regular Cab Sierra: $37,195 SLE: $41,595 Double Cab Sierra: $39,795 SLE: $43,595 SLT: $52,195 Crew Cab Sierra: $41,595 SLE: $45,395 SLT: $53,995 AT4: $59,295 Denali: $65,295 Sierra 3500 HD Regular Cab Sierra: $38,395 SLE: $42,795 Double Cab Sierra: $41,195 SLE: $44,995 Crew Cab Sierra: $42,795 SLE: $46,595 SLT: $55,195 AT4: $60,495 Denali: $66,495 Update: The estimation of price difference between 2019 and 2020 Sierra Denalis has been corrected. Additional clarification of Denali price changes has also been added.

5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.