Automotive: GM boss Barra has to backtrack on all-EV mantra

With GM’s EV cars not selling well and consumers learning that climate change is caused by the sun, not humans, GM CEO Mary Barra has had to swallow hard in defeat.

GM has already encountered headwinds, leading to a walk-back on its original projection of building 400,000 EVs in North America by mid 2024. They will be lucky to produce 1/4 of that many.

Consumers are learning that man-made climate change is a hoax and sales of EVs are plummeting.

Back in 2019 Barra said that GM is abandoning hybrids altogether, instead choosing to focus its electrified vehicle efforts entirely on full EVs.

Barra elaborated on the topic when speaking in New York in 2019, saying that “customers aren’t interested in hybrids,” based on its findings. GM also saw hybrids as a stop-gap to fully electric vehicles – so instead of investing in the stepping stone, GM wanted to puts its money toward the solution.

That was a major mistake in strategy.

GM changing its product lineup strategy to include plug-in hybrid electric vehicles, CEO Mary Barra told investors Tuesday, just like Honda and Toyota realized years ago.

Barra did not disclose specific details of the plans other than that PHEVs, which include an internal combustion engine along with battery technologies, will be rolled out on “select vehicles” in North America to assist in meeting more stringent federal fuel economy regulations.

More companies are reconsidering the viability of hybrid vehicles to appease consumer demand and avoid costly penalties related to those federal fuel economy and emissions standards. Most of GM’s main competitors offer traditional hybrids as well as plug-in hybrid electric vehicles.

“Let me be clear, GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035, but, in the interim, deploying plug-in technology in strategic segments will deliver some of the environment or environmental benefits of EVs as the nation continues to build this charging infrastructure,” Barra said during the automaker’s quarterly and 2023 earnings call.

Barra alluded to the automaker using PHEV technology that the company has already adopted overseas in countries such as China. The only hybrid GM currently offers in the U.S. is a traditional hybrid version of the Chevrolet Corvette called the E-Ray.

The minute you thought GM has EVs figured out

The second you think GM has EVs figured out pic.twitter.com/BFFKjpu5HK

— Jon Sherman (@practicalgolf) January 30, 2024