GM says hybrid vehicles are coming: 'We're not tone deaf to our customers'

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DETROIT — General Motors plans to introduce hybrid models into its U.S. lineup as sales of the vehicles continue to grow amid inflated gas prices and a pullback in all-electric cars.
Mike Anderson, GM's vice president of propulsion engineering, reconfirmed the automaker's hybrid plans, but declined to discuss timing for such vehicles, which had previously been expected as soon as next year.
"It's fair to say that [hybrids are] part of the plan," Anderson, a 35-year GM veteran, told CNBC during an interview. "We're not tone deaf to our customers. We know what they want and we want to give that to them as quickly as we can."
GM has largely been absent from the hybrid market this decade, instead using its resources to go "all-in" on all-electric vehicles. But amid lackluster EV demand, industry deregulation and increased hybrid popularity, Anderson said the company needs to meet customer demand wherever it may be.
"Our long-term vision is an all-electric future. That's our goal," Anderson said. "That's the end state, but it's going to be a journey that involves technology diversity."
GM CEO Mary Barra in January said 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 the technologies. She also told Bloomberg later that 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 in late 2027 to early 2028 with a 70-mile EV range "throughout its portfolio," according to Casey Selecman, director of powertrain forecasts for the company.
"GM has several PHEVs planned throughout the portfolio from the Equinox to the Silverado but has been very cautious in rolling them out due to fears of customer technology preference changes that have burned them in the past," he said.
Anderson declined to discuss potential products or timing for GM's first new hybrid model.
"You can see, without me saying what our future plans are, where the customers are clamoring for these things and really, really going for them," he said. "We want to meet them where they want things."
Sales of hybrid models in the U.S. have jumped amid dimming EV demand, inflated gas prices and more offerings in the market, which GM has been missing out on.
Cox Automotive reports hybrid vehicle sales from the second quarter of this year increased 23% from a year earlier to represent a record 16.3% of U.S. sales from April through June. That compares with roughly 5.8% of sales for EVs, Cox said.
The automotive industry has more powertrain and "propulsion" options than ever before. Here's a breakdown:
- Internal combustion engine (ICE): A "traditional" vehicle with an engine that's fueled with gasoline or diesel.
- Mild-hybrid electric vehicle (MHEV): An ICE vehicle that functions largely like a nonhybrid vehicle but may include minimal electrified features such as a small battery, regenerative braking or electric motor.
- Hybrid electric vehicle (HEV): Think of the Toyota Prius, a vehicle that has a hybrid powertrain system combined with an engine.
- Plug-in hybrid electric vehicle (PHEV): These vehicles feature an internal combustion engine combined with a hybrid system, including a larger battery than traditional hybrid vehicles as well as a plug to recharge the vehicle's battery. They typically allow drivers to travel a certain number of miles using the battery before the engine is needed to power the car or truck.
- Battery-electric vehicle (BEV): These all-electric vehicles do not feature an internal combustion engine. Instead, they contain an electric motor that's powered by a large battery. They need to be recharged using an electrical outlet and charging port or charging station.
- Fuel cell electric vehicle (FCEV): Hydrogen fuel cell electric vehicles and equipment operate much like BEVs but are powered by electricity generated from hydrogen and oxygen instead of pure batteries, which commonly include lithium. They're filled up with a nozzle, similar to traditional gas and diesel vehicles.
- Extended-range electric vehicles (EREV): These are an emerging technology that largely function as a PHEV, however after the battery runs out of energy to power the vehicle, an engine works as a generator to exclusively power electric motors. The vehicle still drives like an EV instead of having the engine directly power the vehicle's motion.
There are a growing number of hybrid variants being introduced by automakers but, in general, those vehicles combine a traditional gas-powered engine with electric motors and a battery to offer better fuel economy and, in many cases, better performance.
The fastest-growing segments for hybrids in the U.S. are compact crossover/SUV and mid-size vehicles, according to Cox.
"Hybrid vehicles continue to be the clearest growth story in the electrified market," Stephanie Valdez Streaty, Cox director of industry insights, said during a presentation last week.
There are currently a few types of hybrids available in the U.S. Traditional hybrids, like a Toyota Prius, feature many electrified engine technologies, while PHEVs have a designated all-electric range before using an engine to power the vehicle.
Then there are extended-range electric vehicles, or "series hybrids," that drive like an EV but have an engine that essentially operates like a generator to power electric motors to propel a vehicle.
The combination of two powertrains adds additional complexity and costs, which has been an argument GM has made against hybrids, but it's something many consumers appear 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 true push into hybrids was the Chevrolet Volt plug-in, which was discontinued in 2019.
GM's crosstown rivals, Ford Motor and Chrysler parent Stellantis, have leaned on suppliers to get 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're deliberate because, usually for strategic reasons, we need to control our own destiny. We need to control our own timing," he said. "Or, if it's commodity, go get it. Go get the best price you can."

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