GM plans to offer hybrid SUVs in strategic pivot

By Kalea Hall

DETROIT, Oct 27 (Reuters) - General Motors GM.N plans to introduce hybrid versions of its popular three-row SUVs, a strategic shift after heavily investing in electric vehicles, according to people familiar with the matter.

The automaker plans to build hybrid models of the Chevrolet Traverse, Buick Enclave and GMC Acadia at a factory in Lansing, Michigan, the people said. Combined, those mechanically similar models are among GM’s strongest sellers in the US.

The timing of the planned hybrid models couldn’t be learned.

GM'S CEO: HYBRIDS ARE COMING

GM CEO Mary Barra told analysts during the company’s earnings call last week that the automaker would have hybrids in multiple segments.

“We will have hybrids. They've already been added. It's not going to be additional (capital expenditures) and engineering,” she said. “We'll talk more about them as we get closer to the launch.”

US hybrid sales have taken off this year as car shoppers seek relief from higher gas prices. GM, which only sells a hybrid version of the Chevy Corvette in the US, has lost market share this year, while strong hybrid players like Toyota have gained.

GM dealers have complained about the automaker’s lack of hybrids, which combine a gas engine with a lithium-ion battery and electric motor to conserve fuel and boost power.

GM DEALERS SAY THEY WANT HYBRIDS

Dealers have been pressing the company to add hybrids to its lineup, including during recent regional meetings between retailers and GM sales executives, according to dealers who have attended.

“We’ve been telling them every chance we get that we need hybrids,” one dealer said.

GM executives in the past have said that hybrids add too much cost and complexity, and that they preferred to invest in EVs.

GM’s U.S. market share dropped to 16.6% in the first nine months of the year, from 17.4% a year prior, while hybrid leaders Toyota and Honda gained.