GM now embraces hybrids

General Motors plans to invest in its Lansing Delta Township assembly plant to handle future production of hybrid-electric vehicles, the U.S. automaker’s latest move to reclaim market share by appealing to changing consumer tastes.

The company announced Tuesday that it plans to invest more than $2 billion over the next few years in the greater Lansing area, an amount that includes $1.25 billion to prepare the assembly plant for “future vehicle production.”

The company said it is working with the U.S. Department of Energy to restructure a previously awarded domestic manufacturing conversion grant and direct those funds toward future hybrid production at the Lansing plant. The company received $500 million under the Biden administration to support the conversion of another factory in Lansing to produce electric vehicles, including hybrid, battery electric, plug-in hybrid electric and hydrogen fuel cell vehicles. These funds were never released, according to GM.

Today, GM assembles the gasoline-powered Buick Enclave, Chevrolet Traverse and GMC Acadia at the Lansing Delta Township plant, which produced a record 291,000 vehicles in 2025.

GM did not provide specifics on when it would begin producing and selling hybrid vehicles. But insiders told TechCrunch to expect hybrids from multiple brands rather than just one vehicle line. A Reuters report, citing unnamed sources, said the company plans to build hybrid versions of the Chevrolet Traverse, Buick Enclave and GMC Acadia at the plant.

Hybrids have become increasingly popular, thanks in part to rising gas prices. Customers also have more choice than ever, with most automakers offering a range of hybrid and plug-in hybrid models. Toyota is the US market leader in hybrid sales, followed by Honda. Ford has also gained considerable market share in hybrid sales over the past two years, selling some 228,000 hybrids in 2025.

But GM has been slow to adopt hybrids. Until recently, the company’s only hybrid electric vehicle was the Chevrolet Corvette E-Ray, launched as a 2024 model. (GM sold 2,444 of these vehicles last year.) The E-Ray has since been discontinued; GM began deliveries of the Corvette ZR1X hybrid in March and will launch a Corvette Grand Sport X hybrid next year.

GM has eschewed hybrids in favor of battery electric vehicles. The automaker has invested billions of dollars to transition its gasoline portfolio to an all-electric model. That strategy changed under the Trump administration with the end of the federal electric vehicle tax credit and slower-than-expected demand. GM hasn’t completely abandoned electric vehicles, although it has seen sales fall year over year. The company still sells many battery electric vehicles under its brands, including the Chevrolet Equinox EV, Blazer EV and Cadillac Escalade IQ.

GM said Tuesday it would share specific details about its hybrid vehicle production plans closer to launch.

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