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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.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

GM recalls 55,000 trucks, SUVs for separating axles, fuel pump failures

General Motors issued four separate recalls covering eight of its truck and SUV models for issues related to fuel pump and half-shaft failure. In total, the four campaigns include more than 55,000 vehicles spread out over three brands and six model years, but they've sorted themselves neatly into two categories. Let's dive in.  Axle separation Four models are being recalled for potential axle separation: The 2023 Cadillac XT5, 2023 GMC Acadia, 2023 Chevy Blazer and 2023 Chevy Traverse. The number of units affected is incredibly small (10 units each times two recalls, for a total potential population of just 20 cars). In each case, a small number left the factory with half-shaft assemblies that may have been missing the retention rings that keep them in place, possibly allowing the axles to separate or eject from the transmission. In the case of the XT5 and Acadia, it's the right-side axle assembly; Chevy dealers, however, will have to check the left side.  Fuel pump failure Again, we have multiple vehicles being recalled for similar issues, but in this case they're a bit more distinct. The first of these recalls covers the 2021-2022 Chevy Equinox and 2022 GMC Terrain. GM says a supplier-initiated change may have led to fuel pumps shipping with inadequate clearances to allow for the prescribed flow of fuel, meaning the pump could starve the engine. Customers experiencing the issue may see a check engine light and experience engine hesitation. In some cases, the cars may not start at all. Chevy and GMC will replace the units in question with correctly specified pumps.  The second recall covers a fairly specific cross-section of GM's HD truck lines. 2017-2019 Silverado and Sierra HD trucks sold with the diesel engine and a dual-tank configuration may have shipped with a rear fuel pump that is susceptible to fouling by debris, preventing fuel from properly transferring to the front tank, or, in extreme cases, resulting in a collapse of the rear tank. This issue can lead to inaccurate/erratic fuel tank readings, engine hesitation, a check-engine light or failure to start.  In both cases, GM will inspect and replace faulty units free of charge for customers. Expect notifications to be delivered by March.  Related video: Recalls Cadillac Chevrolet GMC Ownership Safety Truck SUV