Death Of The Hybrid Vehicle: GM And Volkswagen Say Goodbye

GM (GM) and Volkswagen (VLKAY) pulled the plug on hybrid cars. Ford (F) and Toyota (TM) didn't.

Only 3% of sales are hybrids. Why bother?

With that hard to fault logic, GM and Volkswagen Pull the Plug on Hybrid Vehicles.

“If I had a dollar more to invest, would I spend it on a hybrid? Or would I spend it on the answer that we all know is going to happen, and get there faster and better than anybody else?” GM President Mark Reuss said in an interview.

GM’s view contrasts with other auto-making giants, including Toyota Motor Corp. and Ford Motor Co. which are working on full electrics but also expanding their U.S. hybrid offerings. The differing strategies show a division within the auto industry over what is the best path to full electrification, as manufacturers pivot from their more than century-old reliance on gas-powered vehicles.

Last week, Continental AG, one of the world’s biggest car-parts makers, said it would cut investment in conventional engine parts because of a faster-than-expected fall in demand—yet another sign the industry is accelerating the shift to electric vehicles.

Hybrids, which were popularized by Toyota’s Prius last decade as a social statement, accounted for about 3% of U.S. sales in 2018, according to research firm LMC Automotive.

Aggressively Chasing the 3% "Social Statement" Crowd

David Filipe, Ford’s head of powertrain engineering. “We’re going to be aggressively chasing this space of hybrids.”

How can aggressively chasing 3% of the market make any sense?

Hybrids never made any sense to begin with.

They appealed to yuppies who wanted to make it appear they were doing something for the environment without really doing a damn thing.

Car Engine Technology

Electric vehicles account for only 1% of the market, even less than hybrids, but eventually the market will be electric.

Our strong preference is to go all-in where the market is heading, as opposed to hybrids as a way to hedge our bets,” said Scott Keogh, VW’s U.S. chief.

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Beating Buffett 10 months ago Member's comment

Good read.

Anthony Coffaro 1 year ago Member's comment

Great info. Will have to do some research on Toyota and Ford

Angry Old Lady 11 months ago Member's comment

The problem with this article is that the author says hybrids should be abandoned because it accounts for only 3% of auto sales. But why is it only 3%? Why not try to grow this number? We are a long way from affordable, fully electric vehicles.

James Grover 1 year ago Member's comment

Found out anything interesting in your research on Toyota or Ford?

Duanne Johnson 1 year ago Member's comment


Susan Miller 1 year ago Member's comment

So you like the hybrid model? Care to share why?

Anthony Coffaro 1 year ago Member's comment

Not so much the hybrid car itself. I believe the electric car will happen. I meant as far as companies to invest in. I think Ford and/or Toyota presents a better opportunity than Tesla

Bill Myers 1 year ago Member's comment

Electric cars need to happen or else will continue to be a slave to oil. Bad for Middle Eastern politics and the Earth.

Adam Reynolds 1 year ago Member's comment

Great article. I agree completely.