American legacy automaker General Motors announced plans to launch plugin hybrid electric vehicle (PHEV) models in the North American market amid its commitment to go “all-electric” by 2035.
Notably, this reversal came after several influential dealers voiced concerns over potential customer loss if GM neglects hybrids over pure battery EVs.
GM changes strategies
During the 2023 Earnings Call on Tuesday, GM Chief Executive Mary Barra disclosed that the company will lessen its focus on battery-electric vehicles and bring PHEV models to North America for stricter fuel economy compliance.
Nonetheless, it still expects its EVs to become profitable by 2025. However, it noted that hybrid vehicles will be crucial for the company to meet stringent emissions standards.
GM has yet to clarify which segments will get its new hybrid models.
Apart from launching new PHEVs, GM also aims to introduce six new battery-electrics from its Chevrolet, Cadillac, and GMC brands in 2024.
“Our forward plans include bringing our plugin hybrid technology to select vehicles in North America.
Let me be clear: GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035. But in the interim, deploying plugin technology in strategic segments will deliver some of the environmental benefits of EVs as the nation continues to build its charging infrastructure.”
GM Chief Executive Mary Barra
Dealers call for more hybrid models
EV-a2z reported the dealers’ concerns over GM’s “all-in” strategy on electric vehicles yesterday.
A GM advisory committee with several dealers called for GM to add hybrid models to its North American lineup. They worry about potential customer loss, specifically those not yet ready to shift to pure EVs.
According to the dealers, most customers prefer a “middle ground” between electric and gas-powered vehicles. During this time, GM has not yet unveiled plans regarding hybrid model launches in North America.
It seems that GM listened to these concerns as it finally declared plans to bring back hybrid models in the region during the Earnings Call on Tuesday.
2023 Earnings Call highlights
As per GM’s 2023 Earnings Call, its net income reached $10.1 billion in 2023. This figure indicates that the automaker surpassed its $9.1 billion estimate from its prior guidance.
Moreover, it recorded a $172 billion revenue last year, a notable increase from just $157 billion in 2022. These figures are indeed impressive, given the ongoing United Auto Workers strike that causes the prices to increase.
That said, it is unsurprising that GM expects this year to also become profitable, with a guidance of $9.8 billion to $11.2 billion in net revenue.
Despite these strong performance indicators, it is still worth noting that GM went through a very rough year due to multiple model launch delays, Chevrolet Blazer EV’s stop-sale order, flat stock price, and Cruise-related issues. All these considered, it would be interesting to see how GM would fare in the electric vehicle market this year.
