PHEVs Make a Comeback: GM Reevaluates Decision

Auto company turns to hybrids for emission reduction.

General Motors (GM) is reassessing its position on hybrid technology and has announced a change in its product lineup strategy to incorporate plug-in hybrid electric vehicles. This news was disclosed by GM’s CEO, Mary Barra, during an investor meeting on Tuesday.The company’s renewed interest in plug-in hybrids comes as a surprise considering its previous emphasis on traditional hybrid models. This shift can be attributed to the growing demand for electric and hybrid vehicles and the increasing competition from other automakers in this market segment.Barra highlighted GM’s commitment to reducing emissions and developing environmentally friendly vehicles, stating that the company aims to have 20 new electric or fuel-cell vehicles in its line up by 2023. This would help GM achieve its goal of achieving a zero-emission future.In addition to introducing more plug-in hybrid models, GM also plans to release two new all-electric vehicles and four additional hybrid options by 2023. The company will be investing heavily in research and development of these new technologies and has already established partnerships with major battery manufacturers to ensure a steady supply of high-quality batteries for their vehicles.Furthermore, GM declared its intention to continue producing gasoline and diesel-powered vehicles for the foreseeable future, which will allow them to appeal to a wider consumer base while they work

The recent shift signifies a divergence from GM’s previous stance, particularly in 2018 when the President of the company, Mark Reuss, stated that no investments would be made in hybrids, with an emphasis on prioritizing battery electric vehicles. However, after three years, Reuss revealed in an interview with The Washington Post that the automaker had altered its decision and decided to forego pursuing large hybrids or plug-in hybrids, opting instead to solely focus on pure battery electric vehicles.

The changing landscape has caused GM to reevaluate its strategy. According to Barra, PHEVs will now be incorporated into “specific vehicles” in North America, although specific plans were not disclosed. This decision is motivated by the necessity to adhere to stricter federal fuel efficiency standards.

In the quarterly and 2023 financial report, Barra assured stakeholders and the general public that GM is steadfast in its commitment to achieving zero tailpipe emissions in light-duty vehicles by 2035. Nevertheless, the company’s interim plan involves strategically implementing plug-in technology in targeted segments. Barra emphasized the positive impact of PHEVs on the environment, stating they will aid in reducing emissions as the country works towards establishing essential charging infrastructure.

According to GM’s CFO Paul Jacobson, “We know that the EV market will not experience a linear growth.” He also stated that the company is ready to adapt and switch between producing internal combustion engines (ICE) and electric vehicles (EV).

Barra has suggested the use of plug-in hybrid technology, which has been utilized with great success by GM in various foreign markets, such as China. At present, GM’s sole hybrid option available in the United States is a conventional version for the Chevrolet Corvette. The company’s most recent plug-in hybrid model was the Chevy Volt (shown in the gallery), which was discontinued back in 2019. GM is currently encountering challenges with its latest line of electric vehicles, including a pause in sales for the Chevy Blazer EV since December of last year.

Source: CNBC