General Motors (GM) has announced its intentions to revolutionize its product strategy through the introduction of plug-in hybrid electric vehicles (PHEVs) to the North American market. This information was revealed by CEO Mary Barra during the company's fourth-quarter earnings call.
PHEVs utilize a combination of combustion engines and battery technologies and are part of GM's plan to meet federal fuel economy regulations. GM previously had a line of plug-in electric vehicles led by the Chevrolet Volt, which was launched in the 2010s but was discontinued in 2019 due to low sales. Currently, GM's only hybrid model available in the U.S. is a traditional hybrid version of the Chevrolet Corvette.
The shift in production is geared towards avoiding penalties associated with the Biden administration's stricter fuel economy and emission laws. The U.S. government, in April, enacted tailpipe emissions standards aimed at incentivising EV sales to reach 67 percent by 2032.
In July, the administration outlined its goal to nearly halve vehicle fuel consumption by 2035. As part of this plan, they proposed Corporate Average Fuel Economy standards obligating automakers to reach an estimated average fuel economy of 58 miles per gallon by the 2032 model year. This would require improvements in fuel efficiency by 2% annually for cars and 4% annually for light trucks starting with the 2027 model year.
Mary Barra emphasized GM's commitment to eradicating tailpipe emissions from light-duty vehicles by 2035. However, in the meantime, the strategic deployment of plug-in technology will provide some of the environmental benefits associated with EVs, as the country continues to develop its charging infrastructure.
