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

General Motors plans to introduce hybrid vehicles into its U.S. lineup, reconfirming a strategy shift away from its previous focus on all-electric cars. Mike Anderson, GM's vice president of propulsion engineering, told CNBC the company will offer hybrids as part of its product mix but declined to specify timing, saying only that GM wants to meet customer demand "as quickly as we can."

GM has largely skipped the hybrid market over the past decade, prioritizing electric vehicles instead. That absence now conflicts with market reality. Hybrid sales in the U.S. jumped 23% in the second quarter of 2024 compared to a year earlier, reaching 16.3% of all vehicle sales, according to Cox Automotive. Electric vehicle sales accounted for just 5.8% of the market in the same period.

The fastest-growing hybrid segments are compact crossover and mid-size vehicles, Cox reported. Traditional hybrids pair a gas engine with electric motors and batteries for improved fuel economy. Plug-in hybrids (PHEVs) offer all-electric driving range before the engine engages. Extended-range electric vehicles function like EVs but use an engine as a generator.

GM CEO Mary Barra said in January that the company was studying both PHEVs and traditional hybrids for its U.S. lineup but remained skeptical of the technologies. She indicated a "handful" of models were coming without providing a timeline. In mid-2024, GM announced plans to introduce PHEVs by 2027, when the company faced stricter federal emissions standards that have since been relaxed or eliminated by the Trump administration.

AutoForecast Solutions expects GM to begin offering PHEVs in late 2027 to early 2028 with 70-mile all-electric range across its portfolio. Casey Selecman, the firm's director of powertrain forecasts, said GM has planned multiple PHEVs from the Equinox to the Silverado but moved cautiously due to past customer preference shifts.

Anderson said GM will use both internal and external technologies depending on cost and segment. Rivals Ford Motor and Stellantis have moved faster by relying on suppliers. GM currently offers only one hybrid, a Chevrolet Corvette variant. The company discontinued its last major hybrid, the Chevrolet Volt plug-in, in 2019.