General Motors is now revisiting the idea of including plug-in hybrid vehicles (PHEVs) in its product lineup, an approach it once dismissed. Mary Barra, CEO of GM, made this surprising announcement during an investor briefing on Tuesday.
In 2018, GM explicitly stated through Mark Reuss, then a leading voice at GM, that the company would not invest in hybrids and would focus solely on BEVs. This stance was reiterated by Reuss in a 2021 interview with The Washington Post, reflecting a firm commitment to pure battery electric technology over hybrid systems. However, driven by the evolving automotive landscape and the need to comply with federal fuel economy regulations, GM has decided to adjust its course.
According to Mary Barra, the decision to deploy plug-in technology more strategically in specific vehicle segments underlines GM’s response to regulatory environments and market dynamics. This change also aligns with Barra's earlier commitment during a quarterly and 2023 earnings call to eliminate tailpipe emissions from light-duty vehicles by 2035.
One key drive behind this altered direction is compliance with stricter federal fuel economy standards, coupled with environmental considerations. GM plans to introduce PHEVs into select vehicles within North America, aiming for both ICE and EV production flexibility acknowledging the non-linear growth of the EV market as highlighted by Paul Jacobson, CFO of GM. His sentiment echoes Barra’s viewpoint on EV market growth being non-linear.
Furthermore, leveraging overseas technology plays into GM's revised strategy. The company has hinted at integrating plug-in hybrid technology already implemented in China into their North American product offerings. This move suggests a pragmatic approach towards meeting consumer needs across different markets while still progressing toward broader electrification goals.
As of now, GM offers a traditional hybrid version of the Chevrolet Corvette but had stepped away from PHEVs with the discontinuation of the Chevrolet Volt in 2019.
Source: CNBC