General Motors (GM) is adjusting its electric vehicle (EV) strategy, acknowledging that the EV market’s growth is proving to be more uneven than initially anticipated. This shift means a renewed focus on hybrid and plug-in hybrid electric vehicles (PHEVs). While GM sells PHEVs in China, like the Chevrolet Equinox Plus, the question arises: will a Chevy Equinox Hybrid, specifically a plug-in hybrid model, be available in the U.S. market anytime soon?
GM CEO Mary Barra recently announced the company’s pivot towards more hybrid and PHEV options, stating that GM “has the technology.” This announcement has sparked speculation about which models might be offered as PHEVs in North America. Considering the popularity of SUVs and trucks, it seems logical that these segments would be prime candidates for GM’s PHEV expansion.
The Chevrolet Equinox Plus, a plug-in hybrid version of the standard Equinox crossover, is already available in China. This has led many to believe that GM could easily introduce this model to the U.S. market, especially given GM’s history as a PHEV pioneer with the Chevrolet Volt. Could the Equinox PHEV be fast-tracked for American consumers?
However, according to GMAuthority, and confirmed in discussions with GM representatives, the Chinese-market Equinox PHEV is not currently slated for introduction in the U.S. This may come as a surprise, especially given the growing demand for hybrid SUVs and the increasing popularity of plug-in hybrids.
To clarify Chevrolet’s model lineup, it’s important to distinguish between the Chevrolet Equinox EV, a fully electric crossover built on GM’s Ultium platform, and the standard Chevrolet Equinox, a gasoline-powered compact crossover. Adding to the complexity, the Chevrolet Equinox Plus in China is a PHEV variant of the gasoline-powered Equinox. This version utilizes a 1.5-liter engine paired with a substantial 24.4 kWh battery and an electric motor, achieving a notable 96 miles of all-electric range (based on the Chinese CLTC cycle). Chevrolet China claims a combined range exceeding 600 miles on a full tank and charge.
Despite its seemingly appealing specifications, GM Global Vice President Scott Bell indicated that the Equinox PHEV from China is “not suitable” for the U.S. market. He explained to GM Authority that the Chinese Equinox PHEV serves a “different purpose” and is manufactured in China. While GM possesses the technology for PHEVs, their approach for the U.S. market needs to be carefully considered and strategically aligned with market demands and investment priorities. GM believes they have already made significant investments in EVs and are now evaluating the best way to incorporate PHEVs into their portfolio.
Bell further elaborated that while introducing the Equinox PHEV to the U.S. might be a “quick and easy” move, GM believes it would not be strategically sound at this time. Several factors may contribute to this decision.
One potential reason is that GM might perceive the Equinox PHEV as a competitor to the Chevrolet Equinox EV, potentially cannibalizing sales of their all-electric model. Another significant factor revolves around the supply chain and battery technology of the Chinese Equinox PHEV. Much of its components are likely sourced from China, including a BYD battery and a motor from a Chinese supplier.
Duncan Aldred, Global Vice President of Buick, GMC and GMC Hummer EV, suggested that technology sharing isn’t always straightforward across different markets. While Buick has seen success with the GL8 PHEV van in China, simply “lifting and shipping” these technologies to the U.S. is not always feasible. Furthermore, the Inflation Reduction Act in the U.S. imposes strict requirements on battery and material sourcing to qualify for tax credits, particularly targeting components from China. The Chinese-market Chevy Equinox Plus, with its Chinese-sourced battery and motor, might face challenges in meeting these requirements and appealing to U.S. consumers seeking these incentives.
This situation highlights a potential lack of agility in American automakers’ response to shifting market demands. GM’s first PHEV for the U.S. market is not expected until 2027, whereas the Chevy Equinox PHEV is already available in China. This delay means the Chevrolet Equinox will soon be among the few ICE crossovers without a hybrid option, while competitors like Toyota with the RAV4 Prime, Hyundai with its hybrid lineup, and Ford with the Escape PHEV have already established a presence in the hybrid and PHEV SUV market.
While Chevrolet might argue that the Equinox EV caters to buyers seeking a plug-in crossover, these two models are fundamentally different vehicles sharing little beyond the Equinox name.
GM confirmed that bringing the Chinese Equinox PHEV to the U.S. imminently is not the plan. The 2027 timeframe for PHEVs in the U.S. remains unchanged, and GM is not yet disclosing the specific segments these PHEVs will target. The Equinox PHEV in China was developed for that specific market and is not part of the current strategy for the U.S.
For GM to remain competitive, it’s crucial to expedite the introduction of PHEVs and hybrids to the U.S. market. The automotive landscape is rapidly evolving, and waiting until 2027 for a modern PHEV offering might put GM at a disadvantage as consumer preferences and competitor offerings continue to advance.
Contact the author: kevin.williams@insideevs.com
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