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 as sales of those models surge, marking a reversal of the automaker's previous commitment to go "all-in" on fully electric vehicles.

Mike Anderson, GM's vice president of propulsion engineering, confirmed hybrid plans to CNBC but declined to specify timing. "We're not tone deaf to our customers. We know what they want and we want to give that to them as quickly as we can," Anderson said. CEO Mary Barra said in January that a "handful" of hybrid and plug-in hybrid models were coming but provided no timeline.

GM announced plans to introduce plug-in hybrids by 2027 in mid-2024, when facing stricter federal emissions standards. Those requirements have since been loosened or eliminated by the Trump administration. AutoForecast Solutions expects GM to begin offering PHEVs in late 2027 to early 2028 with a 70-mile electric range across its portfolio, including the Equinox and Silverado.

Hybrid sales have become the fastest-growing segment in the electrified vehicle market. Cox Automotive reports that hybrid vehicle sales jumped 23% in the second quarter of 2024 compared to a year earlier, reaching a record 16.3% of U.S. sales. That compares with 5.8% for full electric vehicles. Compact crossovers and mid-size vehicles represent the strongest hybrid growth segments.

GM has largely sat out the hybrid boom, currently offering only one hybrid model, a Chevrolet Corvette variant. The company discontinued its Chevrolet Volt plug-in hybrid in 2019 after betting heavily on all-electric vehicles. Competitors Ford and Stellantis have moved faster by relying on external suppliers for hybrid technology.

Anderson said GM's hybrid strategy will combine internal development with external sourcing depending on cost, segment and product category. "We're deliberate because, usually for strategic reasons, we need to control our own destiny. We need to control our own timing," he said.