By Sam Klebanov

As EV adoption slows, America's biggest automaker will start selling hybrids again. Years after GM discontinued the Chevy Volt and left hybrids in the rearview mirror to go all-out on EVs, the automaker is putting it in reverse. It’ll again start offering Americans plug-in hybrids that can run on gas and in all-electric mode, CEO Mary Barra said yesterday.

The company still plans to phase out gas-guzzling cars in the US by 2035, but hybrids will now serve as a steppingstone, Barra said.

The EV Rush Didn’t Pan Out

The about-face comes after key dealers pushed GM to send them hybrids since demand for EVs hasn’t been as electric as expected, per the WSJ. Despite government incentives and automakers betting big on battery-powered cars…

• Many drivers are put off by EVs’ priciness and worried about the lack of charging stations.
• Though EV sales grew 52% last quarter from Q4 2022, per Cox Automotive, many carmakers slashed prices and cut EV production goals as unsold cars began collecting dust in dealer lots.

Meanwhile, hybrids have been selling like hotcakes, helping GM’s competitor and the world’s biggest carmaker, Toyota, rake in record profits.

GM is still doing fine…profit jumped 12% in 2023, despite the autoworkers strike costing it over $1 billion last fall. And it hopes to post record earnings next year.