Two top automakers are ditching hybrid vehicles and going all in on fully electric cars.
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The move from GM and Volkswagen is all about meeting tough emissions standards that are being implemented around the world, according to the Wall Street Journal.
"Our strong preference is to go all-in where the market is heading, as opposed to hybrids as a way to hedge our bets," Volkswagen CEO Scott Keogh told the Journal.
Ford and Toyota, on the other hand, are sticking with hybrids, with Ford pumping more money into models like a hybrid F-150 and Toyota maintaining the popularity of its Prius model.
“We can’t say to the customer ’You have to take an all-electric vehicle,’” top Ford engineer David Filipe told the Journal.
GM killed the Chevrolet Volt late last year amid concerns that the car was too expensive, even with a $7,500 federal tax credit. The Volt tax credit began to phase out in April 2019, dropping to $3,750 until September and $1,875 until March 2020.
|GM||GENERAL MOTORS COMPANY||36.83||-0.58||-1.55%|
|F||FORD MOTOR COMPANY||8.16||-0.05||-0.61%|
The federal government offers a $2,500 tax credit for those who purchase a 2012-2015 Toyota Prius Plug-In Hybrid, and $4,502 for a 2017-2019 Prius Prime Plug-In Hybrid.
The tax credits for each manufacturer are phased out when the company sells 200,000 qualified electric cars in the U.S.
China is implementing regulations to fine automakers that fail to sell a certain number of zero-emissions vehicles.