GM announces the arrival of hybrid vehicles: “We are not deaf”

DETROIT — General engines plans to introduce hybrid models to its U.S. lineup as vehicle sales continue to grow amid inflated gasoline prices and a decline in fully electric cars.

Mike Anderson, vice president of propulsion engineering at GM, reconfirmed the automaker’s hybrid plans but declined to discuss the timeline for such vehicles, which was previously expected as early as next year.

“It’s fair to say (hybrids are) part of the plan,” Anderson, a 35-year GM veteran, told CNBC in an interview. “We are not deaf to our customers. We know what they want and we want to give it to them as quickly as possible.”

GM has been largely absent from the hybrid market this decade, instead using its resources to move into fully electric vehicles. But amid lackluster demand for electric vehicles, industry deregulation and the growing popularity of hybrids, Anderson said the company needs to meet customer demand wherever it is.

“Our long-term vision is an all-electric future. That’s our goal,” Anderson said. “This is the end state, but it will be a journey that will involve technological diversity.”

GM CEO Mary Barra said in January that the automaker was still studying plug-in hybrid electric vehicles, or PHEVs, for its U.S. lineup as well as traditional hybrids, but remained critical of those technologies. She also told Bloomberg later in the month that a “handful” of such models were coming, but did not give a timeline.

In mid-2024, GM announced plans to introduce PHEVs by 2027. At that time, GM was under pressure to meet stricter federal tailpipe emissions standards that have since been lowered or eliminated by the Trump administration.

AutoForecast Solutions, an automotive data and consulting firm, expects GM to begin offering PHEVs between late 2027 and early 2028 with an EV range of 70 miles “across its portfolio,” according to Casey Selecman, the company’s director of powertrain forecasting.

“GM has planned several PHEVs in its portfolio, from the Equinox to the Silverado, but has been very cautious in rolling them out due to fears of changing customer technology preferences that have burned them out in the past,” he said.

Anderson declined to discuss potential products or the timing of GM’s first new hybrid model.

“You can see, without me saying what our future plans are, that customers are asking for these things and really, really want them,” he said. “We want to meet them where they want things.”

Sales of hybrid models in the United States have surged amid falling demand for electric vehicles, inflated gasoline prices and more offerings in the market that GM has missed.

Cox Automotive reports that sales of hybrid vehicles in the second quarter of this year increased 23% from a year earlier to account for a record 16.3% of U.S. sales from April to June. That compares to about 5.8% of electric vehicle sales, Cox said.

There are a growing number of hybrid variants being introduced by automakers but, in general, these vehicles combine a traditional gasoline engine with electric motors and a battery to provide better fuel economy and, in many cases, better performance.

The fastest growing hybrid segments in the United States are compact crossovers/SUVs and mid-size vehicles, according to Cox.

“Hybrid vehicles continue to be the clearest growth model in the electrified market,” Stephanie Valdez Streaty, Cox’s director of industry research, said during a presentation last week.

There are currently a few types of hybrids available in the United States. Traditional hybrids, like the Toyota Prius, feature plenty of electrified motor technology, while PHEVs have a designated all-electric range before using a motor to power the vehicle.

Then there are extended-range electric vehicles, or “series hybrids,” which drive like an electric vehicle but have a motor that essentially functions as a generator to power the electric motors needed to propel a vehicle.

Combining two powertrains adds additional complexity and cost, which is an argument GM makes against hybrids, but it’s something many consumers seem willing to pay for as hybrid sales continue to rise.

GM currently offers only one hybrid, a model of its Chevrolet Corvette. The Detroit automaker’s last real push into hybrids was the plug-in Chevrolet Volt, which was discontinued in 2019.

GM’s crosstown rivals, Ford engine and parent company of Chrysler Stellantisrelied on suppliers to bring hybrid vehicles to market more quickly.

Anderson said GM’s strategy “will be a mix” of internal and external technologies based on cost, segment and product.

“We do it deliberately because, usually for strategic reasons, we have to control our own destiny. We have to control our own timing,” he said. “Or, if it’s a commodity, go get it. Get the best price you can.”