GM dealers pressure automaker to introduce more hybrid options

In an exclusive story by The Wall Street Journal Monday, a General Motors (NYSE:) advisory committee, made up of influential auto dealers, is pressuring the Detroit automaker to introduce additional hybrid models.

The Dealers worry that without more hybrid options they risk losing customers looking for a slower transition to fully electric vehicles.

According to unnamed sources, the committee has held several meetings where the dealers urged General Motors to add hybrids to its lineup. In recent years, GM has directed its attention toward fully electric vehicles, opting to largely forego hybrids.

According to the sources, while GM executives have acknowledged the views of their dealers, they have yet to make any commitments regarding future hybrid options.

It is common for automakers to seek input from dealers in vehicle planning, although the specific details of upcoming models are usually kept confidential.

Dealers are urging GM to explore hybrid models, adding to the challenges faced by CEO Mary Barra as her EV plans continue to stall. This shift would be a significant change for GM, which, unlike competitors, focused on EVs and largely skipped hybrids.

Barra, in a recent Detroit event, hinted at the possibility of introducing hybrids in the U.S., emphasizing GM’s existing sales of hybrids in China.

“I still believe in the endgame, that you want to move to EVs as quickly as you can,” she said. Adding that the company has the technology and will continue to evaluate where the market is.

GM introduced hybrids in the U.S. intermittently over the past two decades. In the mid-2000s, hybrid versions of large SUVs like the GMC Yukon and Cadillac Escalade were launched, but they sold poorly and were discontinued within a few years.

In 2010, GM was an early adopter of plug-in hybrids with the Chevrolet Volt, offering approximately 40 miles of electric driving range before switching to a gas generator. Despite being praised for its engineering, the Volt faced financial losses and fell short of GM’s sales targets, leading to its discontinuation in 2019.

Over the past few years, GM executives have shown skepticism towards hybrid technology, expressing concerns that it might divert attention from the company’s overarching objective of achieving near-exclusive electric vehicle sales by 2035.

Shares of GM are up 0.17% in mid-day trading on Monday.