GM bets on EVs as hybrids reach 19% of U.S. vehicle sales

  • GM offers only the Corvette E-Ray as its U.S. hybrid model.
  • Hybrids accounted for 19% of U.S. retail vehicle sales in August.
  • Supplier sources project GM will not sell a U.S. hybrid until near decade's end.

General Motors is largely sitting out a surge in U.S. hybrid demand, offering only the Corvette E-Ray while gasoline prices rise and buyers seek lower fuel costs without switching to a fully electric vehicle. Hybrids accounted for 19% of U.S. retail vehicle sales in August, up from around 16% before the Iran conflict pushed fuel prices higher. AAA said regular gasoline averaged $4.37 a gallon, up about 30 cents in a month and $1.18 from a year earlier. Hybrid sales rose 37% in the first two months after the conflict began, compared with an 11% increase for fully electric vehicles, while hybrids sold more than twice as quickly as non-hybrid gasoline vehicles in the second quarter, according to J.D. Power. GM's U.S. market share fell to 16.8% in the first half from 17.6% a year earlier, while Toyota and Honda gained share. CEO Mary Barra called hybrids an "interim solution" in 2019 as GM prioritized EV investment, but later said the company would bring plug-in hybrids to North America by 2027. Supplier sources and forecasting firms now project that GM will not have a U.S. hybrid on sale until near the end of the decade. Polymarket traders put a 31% chance on WTI crude reaching $110 before September ends and an 11% chance of $120, with about $5.2 million traded.

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