GM has 'solid plan' for plug-in hybrids in 2027

General Motors has a "solid plan" to bring plug-in hybrids to the U.S. starting in 2027, CEO Mary Barra said Thursday.

Barra did not disclose which product lines will get the technology during remarks at the Bernstein Annual Strategic Decisions Conference but said "we think we have a very solid plan." The plug-in models will debut in 2027 as stricter federal tailpipe emissions rules take effect, she said.

"We do see hybrids, because of the regulatory changes, be a part of it, but let's remember with a hybrid, you have two propulsion systems on that vehicle," Barra said. "And it's not the endgame, because it's not zero-emission. So we're trying to be very smart with how we do that and how we deploy capital there."

GM is taking a close look at its cost structure, including in its product development processes, at the same time it is studying opportunities to generate revenue from software and subscription services. The automaker expects to share more about its revenue generation strategy at an investor day event this year, Barra said.

GM has dropped the Ultifi name for its in-vehicle software and customer experience platform that debuted in 2021, she said, calling it an instance of "overbranding." A GM spokesperson told Automotive News that the company will continue working on software-defined vehicles but wanted to avoid confusing customers with another brand name, since it uses OnStar for GM's safety and connectivity service.

The automaker is focused on executing software in the vehicle, both to ensure consistency after high-profile glitches affected the launch of the Chevrolet Blazer EV and to make it more intuitive and seamless for consumers, she said. Over-the-air updates will allow GM to add  features, she said, such as more road miles covered by its Super Cruise hands-free driver-assist technology.

GM's software team now is working on identifying future revenue opportunities, Barra said, as well as determining what consumers are willing to pay for and what they expect GM to provide in its vehicles. Software and services could generate as much as $25 billion in revenue by 2030, GM has said, and the automaker is hiring software talent with experience at Silicon Valley technology companies to help with the effort.

"I do think we have revenue opportunity as we go forward. We have it right now with OnStar," she said. "But we think that there's going to be room to grow that with the right services and upgrades that the customer says, 'Yes, this is better than when I bought it, I'm willing to pay for it.' "