General Motors says electric vehicles remain central to its long-term strategy, but the pace of adoption among commercial fleets has been slower than anticipated.
Speaking at the Green Truck Summit at Work Truck Week in Indianapolis, Ian Hucker, vice president, GM Envolve, said that the company is adjusting its approach to reflect market realities while continuing to invest in electrification and advanced vehicle technologies.
Fleet adoption of electric vehicles continues to grow, but not at the pace regulators and industry analysts expected several years ago, he said. Early projections assumed the transition would accelerate rapidly as governments introduced policies aimed at reducing emissions.
Ian Hucker addresses the audience during his keynote speech at the Green Truck Summit in Indianapolis. (Photo: Leo Barros)
That has not fully materialized. While electric vehicles remain a strategic priority for GM, the rate of adoption among fleet operators has been lower than the industry once predicted.
Despite the slower growth curve, Hucker said certain segments of the fleet market continue to see strong business cases for zero-emission vehicles. Depot-based fleets that return vehicles to a central location daily are among the most successful early adopters. Companies with corporate carbon-reduction policies are also continuing to expand electric fleets.
Total cost of ownership benefits
Some operators that deployed EVs early and invested in charging infrastructure are now realizing total cost-of-ownership benefits compared with internal combustion vehicles, particularly in predictable duty cycles.
As a result, GM expects EV demand to continue increasing in targeted applications, even if overall market growth occurs more gradually than previously forecast.
At the same time, the company is maintaining investments in conventional powertrains. Hucker said GM recently announced about $5.5 billion in manufacturing investments that include continued development of battery-electric technologies as well as a new generation V8 engine.
Multiple propulsion options
The approach reflects the reality that fleets still require multiple propulsion options today. Internal combustion engines remain essential in many commercial applications where duty cycles, payload requirements or infrastructure limitations make electrification difficult.
Manufacturing investments are also intended to improve supply reliability and delivery timelines for fleet customers. Predictable production schedules are critical for businesses that rely on vehicles as operational tools.
Beyond propulsion systems, GM is placing increasing emphasis on connected vehicle services and telematics. The company’s OnStar platform, which celebrates its 30th anniversary this year, continues to expand rapidly within the fleet sector.
Increasing role of telematics
Hucker said OnStar now has more than 2 million paid fleet subscriptions, with live fleet subscriptions growing 47% year over year.
Much of that growth is tied to the increasing role of telematics in fleet management. Modern fleets rely on connected vehicle data to track performance, manage drivers, monitor vehicle health and optimize operations.
GM has focused on developing application programming interfaces that allow its telematics systems to connect with third-party fleet management platforms. This allows operators to manage vehicles from multiple manufacturers within a single system.
The company also offers modular telematics services that allow fleets to select only the capabilities they require and expand them over time.
Advanced driver assistance systems
Safety technologies are another major driver of platform development. Advanced driver assistance systems, cameras and connected safety services are becoming increasingly common in commercial vehicles.
GM’s Super Cruise automated driving technology has accumulated roughly 700 million miles (1.13 billion km) of operation, Hucker said, and is gradually expanding beyond passenger vehicles.
Although adoption in the fleet sector remains limited today, he suggested the technology could become more common as operators recognize potential benefits such as reduced driver fatigue and improved productivity.
Onboard cameras
Fleet attitudes toward onboard cameras have also evolved. In the past, some companies were hesitant to install cameras because of driver privacy concerns.
Today, cameras are widely accepted because they can help protect drivers and businesses from fraudulent insurance claims and provide clear records of incidents. Monitoring systems can also improve driver behavior and overall road safety.
Connected vehicle services are also being used to strengthen security. Geofencing and vehicle tracking have long been part of telematics platforms, but GM is now developing additional features aimed at preventing theft.
One such capability allows fleet operators to remotely disable vehicles parked overnight, preventing unauthorized use.
Artificial intelligence is another technology expected to play a growing role in vehicle operations. Later this year, GM plans to integrate Google Gemini into its vehicle infotainment systems.
Conversational AI platform
The conversational AI platform will allow drivers to interact with the vehicle using natural speech to perform tasks such as route planning or retrieving information. It may also help drivers record meeting notes or summarize discussions while traveling between appointments.
These capabilities could improve driver productivity and reduce administrative workload during the workday.
Hucker said fleets across different regions share several consistent priorities when evaluating vehicles and technology.
The first is uptime. Minimizing the amount of time a vehicle spends out of service remains critical to fleet profitability.
Flexibility is another priority. Fleets increasingly want vehicles capable of performing multiple tasks in order to maximize utilization and return on investment.
Safety remains the third key factor. Technologies that protect drivers and reduce the likelihood of collisions continue to be central to vehicle development.
External factors such as regulatory changes and shifting market conditions can still influence the pace of technology adoption, however.
Adapting to the market
Hucker cited GM’s decision to scale back production of the Chevrolet BrightDrop as an example of how quickly industry conditions can change. While the electric delivery vehicle was designed to serve last-mile logistics operations, the market was not yet strong enough to support a dedicated factory for the product.
The decision does not mean the underlying technology will disappear, he said, but it illustrates how manufacturers must adapt as the market evolves.
For GM, the commercial vehicle sector continues to grow. The company reported a roughly 10% increase in fleet sales last year and recorded its best year ever for pickup sales in the fleet segment.
Demand for the company’s Savana vans also remained strong, demonstrating the continued importance of established platforms alongside emerging technologies.
