- GM will reintroduce plug-in hybrids despite its EV-first strategy.
- Mary Barra says hybrids remain under evaluation for key markets.
- Plug-in hybrids made up just 1.8 percent of U.S. sales last year.
General Motors is finally stepping into the plug-in hybrid game, a move that’s been a long time coming. Despite shifting political winds that have made it easier to build thirsty combustion models, GM still sees full electric vehicles as the ultimate goal.
Read: Chevy Promised 255 Miles, The New Bolt Beats It Anyway
With tariffs weighing on costs, the federal $7,500 EV tax credit now off the table, and fuel economy standards loosened, automakers are being forced to rethink their timelines and adjust accordingly.
While speaking at the Automotive Press Association, Mary Barra confirmed that GM “had to make some fairly significant changes,” including cutting billions of dollars’ worth of EV investments. But she also made clear that new hybrids are in development, Autonews reports.
Plug-In Plans Materialize
“We are evaluating plug-in hybrids,” Barra said. “We have plans to do some. In the past, plug-ins were the only hybrids that actually counted toward the regulatory perspective. So we have plans to do those, and we’ll have hybrids where we think we need to. But again, we’re mainly investing and continuing to work on EVs because we think that’s the end game.”
In mid-2024, Barra revealed there were plans to start selling plug-in hybrids in the US in 2027. In her most recent remarks, she didn’t provide an updated timeline or name any specific GM models slated to receive the new powertrains.
However, she acknowledged that hybrids present their own challenges, particularly the fact that many owners don’t bother to plug them in. Nonetheless, GM is weighing both plug-in and conventional hybrid setups as part of its evolving strategy.
Read: Drivers Buy Plug-In Hybrids And Forget The ‘Plug-In’ Part
“We’re trying to be very thoughtful about what we do from a hybrid and a plug-in hybrid perspective,” she said.
Staying the Course on EVs
Even though GM will invest in PHEVs, it isn’t pulling back from BEVs quite as aggressively as some of its competition. For example, Ford recently took a $19.5 billion writedown after axing several important EV programs and partnerships. GM, by contrast, expects to take a $6 billion charge related to scaled-back EV spending, alongside a separate $1.6 billion charge posted in the third quarter.
Read: Stellantis Quietly Kills Its Plug-In Hybrids In America
During her remarks at the same event, Reuters reports that Barra emphasized GM’s desire to remain adaptable, especially given the uncertain regulatory environment ahead.
“I’m a little surprised at some [automakers] that are really pulling away very quickly, because we don’t know what will be in ‘29, ‘30, ’32.”
