GM to offer hybrid SUVs in strategic pivot from electric

By Kalea Hall and David Shepardson

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

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

GM said in a statement after Reuters reported the plans on Tuesday that it plans to invest in its Lansing Delta Township assembly plant to prepare for hybrid-vehicle production.

It did not provide details on timing or models.

GM CEO SAYS HYBRIDS ARE COMING

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

"It's not going to be additional (capital expenditures) and engineering," she said, adding that GM would say more about them as it got closer to launch.

US hybrid sales have taken off 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.

Dealers have complained about GM'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, some of those who have attended recent regional meetings between retailers and GM sales executives told Reuters.

"We've been telling them every chance we get that we need hybrids," one dealer said.

GM executives have in the past said hybrids add too much cost and complexity, and that they preferred to invest in EVs. Hybrids also didn't help GM meet stringent emissions standards that Trump's administration has upended.

GM's US market share dropped to 16.6% in the first nine months of the year, from 17.4% a year before, while hybrid leaders Toyota and Honda gained.

GM's hybrid plans have emerged days before the November 3 midterm congressional election, where several key Michigan seats are up for grabs.

US President Donald Trump's administration has been eager to advertise its efforts to support US auto manufacturing.

Energy Department Assistant Secretary Audrey Robertson is scheduled to tour the Lansing factory where GM plans to make the hybrids later on Tuesday.

The department is restructuring a previously awarded grant to GM to support EV production at a nearby Lansing plant to now support hybrid production.

In 2024, under President Joe Biden, the Energy Department awarded GM $500 million to retool another nearby Michigan assembly plant to build EVs but the money was not released. GM said those funds will go to its Lansing Delta Township for future hybrid production.

The department did not respond to a request for comment.