General Motors will add hybrid vehicles to multiple segments of its lineup, marking a shift for an automaker that has largely concentrated its U.S. electrification strategy on fully electric vehicles.
CEO Mary Barra confirmed the plan during GM's third-quarter earnings call Oct. 20, saying the company will offer hybrids in key segments where it already competes. GM has not yet identified the models or announced specific launch dates.
“We will have hybrids,” Barra told analysts. “We'll talk more about them as we get closer to the launch.”
The move comes as higher gasoline prices and growing consumer interest in fuel-efficient vehicles put pressure on automakers to expand their hybrid offerings. Toyota, Honda and Hyundai have established positions in a market where GM has had relatively few options for U.S. buyers.
GM's U.S. sales fell 6% in the third quarter to 670,974 vehicles, according to the company's October sales report. Its strongest businesses remain full-size pickups and SUVs, while its smaller Chevrolet and Buick SUVs have also delivered strong sales.
Barra noted that much of the current hybrid market is concentrated in compact cars, midsize cars and minivans — segments GM does not currently serve. She said the company's planned hybrids would be aimed at segments in which it already competes.
The announcement does not yet establish whether GM will offer conventional hybrids, plug-in hybrids or both in each segment. Nor has the automaker confirmed speculation about specific models, including hybrid versions of its pickups or compact SUVs.
For dealers, the unanswered questions are which vehicles will receive the new powertrains, when they will arrive and how they will fit alongside GM's existing gasoline and electric offerings.
The shift gives GM another option for competing for buyers who want better fuel economy but are not ready to move to a fully electric vehicle. It also comes as automakers reassess their product plans amid changing consumer demand and a less predictable regulatory environment.
GM said it will provide more details as the launches approach.
