Because of elevated gasoline prices and cooling demand for fully electric vehicles, General Motors (NYSE: GM) is planning to add hybrid models to its U.S. lineup.
Hybrids are steadily gaining popularity and their sales keep climbing.
For roughly the past decade, GM has been largely absent from the hybrid segment.
In an interview, GM Vice President of Powertrain Engineering Mike Anderson said automakers are listening to what the market is asking for. The 2024 Chevrolet Corvette E-Ray hybrid sports car was highlighted as an example of the company's hybrid technology.
Detroit — Against a backdrop of rising oil prices and softer demand for pure battery-electric vehicles, hybrid sales continue to grow, and General Motors (NYSE: GM) plans to introduce hybrid models in the U.S. market. GM powertrain engineering vice president Mike Anderson reconfirmed the hybrid plans but did not disclose a launch timeline. Previously, the market expected such models to arrive as early as next year. Anderson, who has spent 35 years at GM, told reporters in the interview: "You could say hybrids are part of our plan. We are not ignoring what customers want. We know what consumers want, and we will deliver it as quickly as we can."
Over the past decade, GM has essentially abandoned the hybrid race, concentrating its resources on a full push toward an all-electric transition, with a goal of selling only electric vehicles across its lineup by 2035. But now, demand for pure EVs has weakened, industry regulation has been relaxed, and hybrids have become increasingly popular. Anderson said the company wants to satisfy customers across every segment of demand. "Our long-term vision is still full electrification—that is our ultimate goal," Anderson said. "Although the destination is all-electric, the path to get there will include a diversified technology roadmap."
GM CEO Mary Barra said in January that the company was still evaluating bringing plug-in hybrids (PHEVs) and conventional hybrids into its U.S. lineup, though at the time she remained somewhat cautious about such technologies. Later that month, she told Bloomberg that a small number of hybrid models would be launched, but gave no timetable.
In mid-2024, GM announced plans to launch plug-in hybrid models by 2027. At that time, federal emissions standards were stringent, but the Trump administration later lowered and even eliminated some of those standards, changing the compliance pressure GM faced.
Kathy Seleckman, head of powertrain forecasting at automotive consultancy AutoForecast Solutions, said the firm expects GM to roll out plug-in hybrids across its entire lineup between late 2027 and early 2028, with electric-only range of up to 70 miles. "GM plans to equip plug-in hybrid systems on multiple models, from the Equinox to the Silverado pickup. But it is proceeding very cautiously, worried that consumer technology preferences could shift again—something that has caused the company losses in the past," she said.
Anderson declined to disclose product details or launch timing for the first all-new hybrid model. "Without me detailing future plans, everyone can see that customers urgently want this kind of product and are enthusiastically embracing it. We need to supply where customers have demand," he said.
Currently, with EV demand cooling, oil prices rising, and more hybrid products available on the market, U.S. hybrid sales keep rising—and GM has missed this wave. Data from Cox Automotive shows that U.S. hybrid sales in the second quarter rose 23% year over year; from April to June, hybrids reached a record-high share of 16.3% of U.S. new-vehicle sales, while pure EVs accounted for only about 5.8% in the same period.
EV and hybrid vehicle categories
Today's auto industry offers more powertrain options than ever before: Internal combustion engine (ICE): traditional gasoline or diesel vehicles powered by an engine. Mild hybrid (MHEV): still fundamentally an ICE vehicle, equipped with a small battery, regenerative braking, an electric motor, and other limited electrification components. Hybrid electric vehicle (HEV): represented by the Toyota Prius, combining an engine with a hybrid system and requiring no external charging. Plug-in hybrid (PHEV): an internal combustion engine plus a hybrid system, with a larger battery than a conventional hybrid and support for external charging. It can drive a certain distance purely on electricity, after which the engine takes over to propel the vehicle. Battery electric vehicle (BEV): no internal combustion engine, driven by an electric motor using a large battery, and requiring external charging piles. Fuel cell electric vehicle (FCEV): similar in principle to a BEV, generating electricity through a hydrogen-oxygen reaction rather than a lithium battery; refueling is similar to traditional fueling. Extended-range electric vehicle (EREV): an emerging technology with a user experience close to that of a PHEV; when the battery is depleted, the engine acts only as a generator to supply power to the motor and does not directly drive the wheels, so the vehicle still feels like an EV to drive.
Major automakers are rolling out more and more hybrid variants. Overall, hybrids pair a traditional gasoline engine with an electric motor and battery to achieve better fuel economy and, in many cases, stronger performance. Cox data shows that the fastest-growing U.S. hybrid segments are compact crossover SUVs and midsize cars. Stephanie Valdez Streaty, Cox's director of industry insights, said in a presentation last week: "Hybrids remain the clearest growth story in the electrified market."
There are currently several types of hybrids on the U.S. market. Conventional hybrids such as the Toyota Prius use a range of electrified engine technologies; plug-in hybrids have dedicated electric-only range, and the engine takes over once the battery is depleted. There are also extended-range EVs, which drive like EVs, with the engine essentially serving only as a generator.
Historical data shows that when owners of hybrid electric vehicles trade in their cars, they are relatively unlikely to choose the same type of vehicle again. GM has already discontinued the Chevrolet Volt plug-in sedan. Stacking two powertrains brings greater complexity and cost, which is why GM resisted hybrids in the past. But as hybrid sales continue to rise, a large number of consumers are willing to pay for them.
GM currently sells only one hybrid model: the hybrid version of the Chevrolet Corvette. The Detroit automaker's last major hybrid push was the Chevrolet Volt, which was discontinued in 2019. Cross-town rivals Ford and Stellantis, the parent of Chrysler, have quickly brought hybrid products to market with the help of suppliers.
Anderson said GM's strategy will combine in-house and external technologies, choosing flexibly based on cost, segment, and model. "Our pace will be deliberate. For strategic reasons, we want to control our own technology roadmap and launch cadence. If something is a standardized common component, we will source it externally to get the best price," he said.
GM once firmly bet on pure electric vehicles, believing hybrids were complex and costly. But with U.S. hybrid sales surging, EV demand falling short of expectations, and regulation easing, GM is adjusting its course and plans to add hybrid and plug-in hybrid products—though it is moving cautiously, having learned lessons from past product failures.
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