A General Motors advisory committee with several dealers is calling for the American legacy automaker to launch more hybrid models instead of battery-electric vehicles, The Wall Street Journal reports, citing “people involved in the discussions.”
These influential GM dealers voice concerns that they may lose buyers who are not yet willing to go all in on pure electric vehicles.
GM dealers call for more hybrid models
During recent meetings, dealers on advisory committees reportedly urged GM executives to introduce more hybrids to the brand’s portfolio.
However, GM has already put its focus on BEVS in recent years. According to dealers, more buyers are seeking a “middle ground” between electric vehicles and traditional gas-powered models.
In response, GM executives recognized the prevailing concerns of the dealers. However, the American automaker has not yet announced plans for potential hybrid model launches in the future, the report sources said.
The dealers’ call for more hybrid models poses another major pressure Chief Executive Mary Barra faces amid the company’s shift to BEVs. It could potentially prompt GM to reverse from its current electrification strategy to go all in on battery-electrics, unlike other rivals who still maintain hybrid models in their lineup.
“I still believe in the endgame, that you want to move to EVs as quickly as you can. But we have the technology, and we’ll continue to look at where the market is.”
GM CEO Mary Barra said during a December event in Detroit
Waning demand for all-electric vehicles
Recent reports suggest that the electric vehicle market has suffered from waning demand after enjoying a few years of high customer interest.
In contrast, hybrid vehicles continue to dominate the automotive market over the past year. Customers apparently remain reluctant towards BEVs due to increasing prices and lack of charging station concerns.
That said, many dealers regard hybrids as a crucial option between straight gas-powered and electric vehicles.
“With EV adoption slower, hybrids are going to be a bigger part [of the business].”
Ford Chief Financial Officer John Lawler stated at a Barclays investor conference in November
Leading brands in the HEV industry
According to the report, Japan’s Toyota and Honda and South Korea’s Hyundai and Kia are currently the leading players in the hybrid market.
Research firm Motor Intelligence revealed that US’ HEV sales increased by more than 50% in 2023, following a slight decline in the prior year. Notably, this figure includes both regular hybrids and plug-in hybrids.
“Hybrids are what’s hot right now. I’d like to see GM prioritize hybrids.”
Chris Hemmersmeier, a Salt Lake City-area car dealer
Mr. Hemmersmeier noted that hybrid models like the Kia Sportage compact SUV and Stellantis‘ Jeep Wrangler and Grand Cherokee plug-in-hybrid SUVs have been popular among customers. Therefore, he worries that GM’s focus may cause him to lose customers.
In hindsight, GM was one of the first automakers to offer a plug-in hybrid when it launched the Chevrolet Volt in 2010. It also had hybrid models in the mid-2000s, including the counterparts of the GMC Yukon and Cadillac Escalade. Despite being popular as gas-powered vehicles, their HEV variants did not fare well. It prompted the company to phase them out within just a few years.
All that said, GM’s current electric vehicle push is indeed crucial for the company to catch up with its rivals, especially when it aims to beat market leader Tesla. However, dealers’ call for more hybrids may impede the American brand from advancing to the top of the global BEV market.
