General Motors No Longer Building Hybrid Cars for the U.S.
Both General Motors and Volkswagen put all their eggs in the electric car basket in a bold but promising move.
For years now, we’ve been told that hybrid and electric vehicles are the future. And General Motors has remained at the forefront of that movement, building a variety of both in recent history. But now, in an interesting move, they’ve decided to cease production of all hybrid vehicles in the United States. And they aren’t the only ones who see no future in hybrids. Volkswagen is following suit as well, leaving a host of other automakers to pick up the hybrid slack.
So why, exactly, would General Motors and VW choose to completely scrap this genre, which other automakers use to help comply with existing emissions and fuel economy standards around the world? Well, because they’re going all-in on all-electric vehicles, of course, according to the Wall Street Journal. “Our strong preference is to go all-in where the market is heading, as opposed to hybrids as a way to hedge our bets,” Volkswagen CEO Scott Keogh told WSJ.
“If I had a dollar more to invest, would I spend it on a hybrid? Or would I spend it on the answer that we all know is going to happen, and get there faster and better than anybody else?” added GM President Mark Reuss. It’s a bold strategy, for sure. But the way GM and VW see it, putting all their eggs in one basket will lead to better results in the great electric race.
According to WSJ, automakers have invested $255 billion developing 200 plug-in vehicles on the way from now until 2023. Developing both hybrids and electric cars obviously costs more than traditional gas-powered vehicles. Reportedly, hybrids add around $2,000 to a vehicle’s cost, versus $6,000-$10,000 for electrics. Right now, General Motors plans on introducing 20 new all-electric vehicles worldwide over the next four years.
Only time will tell if this is the right move. While GM and VW exit the hybrid race, both Ford and Toyota are working to expand their offerings. “We can’t say to the customer ’You have to take an all-electric vehicle,” Ford engineer David Filipe told WSJ. But if this move helps GM produce superior electric vehicles and that’s the way the market ultimately goes, Ford and Toyota could be left scrambling to catch up.
Photos: Chevrolet
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