Dealers Urge General Motors To Embrace Hybrids Amid Electric Vehicle Hesitancy – General Motors (NYSE:GM)

In recent meetings, General Motors GM dealers have voiced concerns over the automaker’s exclusive focus on fully electric cars, urging the company to introduce hybrid models. 

These dealers, who participate in advisory committees, fear losing customers who are not yet ready to embrace fully electric vehicles.

Dealers emphasized the growing demand for a middle ground between traditional gas-powered cars and electric vehicles (EVs), which are not only more expensive but also require regular charging. 

Related: General Motors Gears Up For Q4 Print; Here’s A Look At Recent Price Target Changes By The Most Accurate Analysts.

Despite expressing these concerns, GM executives have yet to make any commitments regarding including hybrid options in the company’s future lineup.

This appeal from dealers sheds light on the additional challenges GM Chief Executive Mary Barra faced as the momentum of her EV push encounters obstacles, the Wall Street Journal notes.

Considering the automaker’s steadfast commitment to EVs and avoidance of the hybrid market, incorporating hybrid models would signify a significant strategic shift for GM.

While GM has not confirmed any plans for hybrids, Mary Barra did not rule out the possibility during a recent event in Detroit. 

She acknowledged that GM already sells hybrid models in China and emphasized the importance of assessing market dynamics.

In contrast to GM’s EV-centric approach, industry trends indicate a surge in hybrid vehicle sales, with major players like Toyota Motor Corporation TM, Honda Motor Company Ltd HMC, Hyundai Motor Co HYMTF, and Kia dominating the hybrid market. 

This shift is attributed to consumer hesitancy towards fully electric vehicles, driven by concerns about higher prices and charging infrastructure.

With Ford’s Chief Financial Officer, John Lawler, predicting a greater role for hybrids in the industry, GM’s reluctance to embrace this trend could pose challenges for its dealers. 

Dealers outside GM’s network, such as Chris Hemmersmeier, report strong sales of hybrid models and express concerns about potential customer loss due to GM’s heavy emphasis on EVs.

Price Action: GM shares are up 7.69% at $38.11 during the premarket session on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via GM