September 18, 2026 - As Fuel Prices Rise, Is GM Missing Out

This is the Telemetry Transportation Daily for September 18, 2026, and I'm Sam Abuelsamid, Vice President of Market Research for Telemetry. 

In yesterday's episode, I discussed visiting MP Materials' new rare earth magnet factory in Fort Worth, Texas, which has General Motors as its first customer. As I was heading to the airport, I stopped to put some gas in the car, and the price of regular fuel near Ann Arbor, Michigan, was $4.39/gal. When I returned the next evening, the price at that same station was $4.99/gal, and diesel was up $6.79. Other parts of the country are significantly higher. We've been seeing this upward trend in fuel prices since the U.S. first attacked Iran in February, which subsequently led to a near-complete blockage of the Strait of Hormuz, through which 20% of the world's crude oil is transported. 

These elevated prices have led to both a stabilization and a small amount of growth in EV sales since February and substantial growth in hybrid sales, which hit nearly 15% market share in August, nearly double what it was a year earlier. Toyota, Honda, and Hyundai Motor Group are seeing the biggest benefit from this shift to hybrids, with most of their top-selling models now available with electrified powertrains. Of the Detroit-area automakers, Ford currently offers three hybrid models, with an updated Lincoln Corsair early in 2027, and Stellantis has the new Jeep Cherokee. The only hybrid currently sold by GM in North America is the high-performance Chevrolet Corvette Grand Sport X and ZR1X. Back in 2024, GM announced it would begin reintroducing hybrids to its North American lineup, but despite offering numerous hybrids in China, it has yet to announce anything. 

Notably, the redesigned Chevrolet Silverado and GMC Sierra are launching this fall with more powerful new gas V8s and continuing with the 3.0-liter diesel engine. While the diesel is 30-40% more efficient than the gas engines, the high fuel cost means drivers won't see any real savings at the pump. With the conflict likely to continue for some time and fuel prices unlikely to decline, the only option that GM has offered customers in search of lower operating costs is its EVs. The ongoing partnership between GM and MP Materials seems to be a sign that GM isn't planning to significantly scale back its EV plans, but its electric trucks are not selling well, and they remain expensive. Without a hybrid offering to go up against the Ford F-150, this could be a challenging time to launch more powerful V8s. The same is also true for Stellantis and its Ram trucks, which are being launched in even less efficient forms like the TRX and Rumble Bee performance variants.  Considering how much Detroit depends on big trucks for profits, lacking any hybrid offerings couldn't come at a worse time.

Thanks for listening.