General Motors is heavily investing in electric vehicles, planning to spend $35 billion on bringing more EVs to market by 2025. However, its dealers are advocating for the addition of hybrid models, as they believe there is a demand for them from customers who are not yet prepared for a full transition to electric vehicles but also prefer not to stick with gas-powered vehicles. The dealers are trying to persuade GM executives to reconsider their focus on hybrids, as the company has mostly veered away from hybrid technology aside from a few models such as the plug-in hybrid Volt and some mild hybrid options.
The dealer advisory committees are urging GM to offer hybrid vehicles in response to the unexpected outcomes of the company’s EV push. CEO Mary Barra has expressed her continued belief in the EV plan but has not ruled out the possibility of introducing hybrid models in the U.S. She emphasized the importance of moving towards EVs while acknowledging the existence of market demand for hybrid technology. Despite historically leaning heavily towards EVs, Barra has indicated a willingness to consider hybrid models in response to changing customer preferences.
Dealers have observed a growing customer demand for hybrids, with some dealerships seeing strong sales for hybrid and plug-in hybrid models from other brands. One dealer who operates GM stores as well as other brands highlighted the brisk sales of hybrid models at his non-GM stores and expressed concerns about the potential loss of customers due to GM’s heavy focus on EVs. Some dealers are looking to Toyota, GM’s competitor, as an example of the success of hybrid vehicles. Toyota recorded significant hybrid sales in 2023, demonstrating a lucrative market for hybrid technology. These dealers believe that GM should take note of this and prioritize offering hybrid options to meet customer demands.
