General Motors CEO Mary Barra has made it clear: electric vehicles (EVs) remain the company’s “North Star”, but GM won’t be abandoning hybrids or internal combustion engines any time soon.
Speaking in a candid interview with Automotive News last week, the GM CEO outlined a pragmatic approach to the industry’s transition, one that balances new investments in battery-powered models with continued commitment to profitable petrol engines.
“We haven’t announced specifics, but we said we will launch some hybrids, but I think we have to stay focused on the fact that it wasn’t even 10 years ago there were a lot of hybrids in the market, and the sales went up and the sales went down,” said Ms Barra.
“What we have also seen from plug-in hybrids, there’s a lot of data [that shows] people buy a plug-in hybrid but they never plug it in.”
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The challenge, she explained, is that hybrids inherently add cost.
“You also have to step back and understand that the vehicle has two propulsion systems on it, so that inherently makes it more expensive. So we’re going to do the right hybrids that we think are important for our portfolio,” she said.
GM currently offers just one hybrid in its home market, the Chevrolet Corvette E-Ray. It doesn’t offer any plug-in hybrids (PHEVs), despite having previously offered PHEVs and extended-range electric vehicles (EREVs) including the Cadillac CT6 and Chevrolet Volt.
It also recently launched a PHEV version of the Chevrolet Equinox in China.
Ms Barra’s comments reflect GM’s caution about investing too heavily in hybrids. Unlike Toyota, which has built its global dominance on hybrid drivetrains, GM has largely focused on a two-pronged strategy: developing a full battery-electric lineup while refining its traditional internal combustion engine (ICE) range.
“We have a very strong EV portfolio and a very strong internal combustion [portfolio] and in some cases, our regular internal combustion engine gives you better fuel economy and overall driving experience,” she said.
“I think we’re going to be positioned to compete well. But, also be good stewards of our owners’ capital, and how we deploy R&D dollars.”
That capital stewardship is why GM won’t flood the market with hybrids that may not have staying power. Instead, Ms Barra suggested the company will launch hybrids only where they make strategic sense for the portfolio.
At the same time, GM is doubling down on its iconic V8 engines, even as some rivals move to phase them out. Ms Barra confirmed development of the next-generation V8 is underway, backed by learnings from past quality issues, which she said GM is learning from.
“Anytime we learn from something that we have in the field, we not only make sure [it is fixed] in the next version of it… but we do what we call a ‘read across’ and we do that across the globe,” she explained.
“Also our engineers get into and say, ‘Okay, this happened. What could be something that might be related to that?’ So I’m really proud of that process, because it’s one thing to have a problem, it’s another thing to have it the second time. So that is the work that the team does by standard process.”
Ms Barra insisted combustion-powered vehicles remain a major growth driver for GM in the short to medium term.
“I think that’s a huge positive, continue to serve the market from heavy-duty and light-duty trucks for both Chevrolet and GMC, the Silverado and the Sierra, as well as our full-size utilities with the Tahoe, Suburban, Escalade and the Yukon,” she said.
“And also we have a strong franchise from a crossover perspective, when you think about the Chevy Traverse and the Buick Enclave and the GMC Acadia… so we are well positioned.”
Even smaller ICE nameplates, such as the Chevrolet Trax and TrailBlazer, remain strong sellers.
“So I think we’re really well positioned with our internal combustion engine platform, and it is a huge opportunity for us to be able to sell more of those as the regulatory environment changes. So again, we’ll make the adjustments we need to respond to the market as we continue on our journey,” she said.
Despite all this, Ms Barra insists EVs remain central to GM’s long-term vision.
“We have 14 models, all over 300 miles (482km) of range and so there’s more desirable vehicles, more affordable vehicles, and more charging. So we’re going to be ready, because, as we’ve said, EVs are our North Star. But we also want to be led by the consumer. The consumer will tell us,” she said.
Her remarks underline a strategy that is broadly in line with the shift across the industry, which positions EVs where demand is strong, hybrids in select segments, and maintains combustion engines that remain profitable and in demand.
“We believe growing EV sales, albeit at a different rate,” she added, highlighting the non-linear nature of the transition.
For Australia, where hybrids still outsell EVs by a wide margin and V8s remain a dying cultural icon, Ms Barra’s comments hit home.
GM’s pragmatic approach mirrors local market realities that, while electrification is coming, it will take much longer than initially thought.