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GM Supplier OPmobility Says Automakers Are Shifting Development Back To ICE

The auto industry is reevaluating its electrification plans, with softening demand for EVs and evolving regulations pushing automakers back towards internal combustion engines (ICE). Indeed, the entire industry, including GM suppliers, is facing this change in direction. Now, one major GM supplier has confirmed that automakers are indeed rebalancing their electrification efforts with renewed development in internal combustion.

The assembly line at the GM San Luis Potosi Plant in Mexico.

Per a recent report from Automotive News, OPmobility, one of GM’s Top Global Suppliers, has indicated that automakers around the world are currently producing EVs at levels that are 40 to 45 percent below initial targets. As a result, suppliers like OPmobility must adapt to meet their clients’ new expectations.

Part of the shift is due to softening demand for EVs, with the European market falling short in EV adoption due to high prices and disappearing government subsidies. As a result, German automaker Mercedes-Benz has delayed its EV targets, while Stellantis will stop EV production at its Mirafiori plant. Volkswagen has also announced that it may stop production of the Audi Q8 e-tron at its plant in Belgium. Meanwhile, Ford has indicated that it will pour an additional $3 billion into its production facility in Ontario, Canada to support the ICE-powered Super Duty F-Series pickup truck.

Interestingly, OPmobility CEO Laurent Favre indicated to Automotive News that some companies are now eyeing a return to hybrid models, likely a reference to General Motors:

“There also is renewed interest for hybrids and plug-in hybrids. Some of our clients, notably in the U.S., had planned to shift directly from classic combustion engine vehicles to EVs and now they are focusing on plug-in hybrid development,” Favre said.

General Motors announced earlier this year that it would reintroduce new plug-in hybrid electric vehicles in North America. The new General Motors PHEV models are expected to arrive in North America around the 2027 timeframe.

“There is still a lot of uncertainty on volumes and the market’s development,” Favre told Automotive News. “The shift to electric was imposed by regulators, it didn’t come because of demand deriving from consumers.”

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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