Report: Cadillac ATS, next-generation CTS to get two-mode hybrid system

General Motors Vice Chairman Bob Lutz last week repeated his long-held opinion that hybrid gas-electric cars have a limited market and will not be profitable for the Detroit automaker. However, he said that GM will be forced to make more hybrids due to tougher fuel-efficiency regulations.

This brings up the question – what hybrids can we expect from GM?

According to Jim Hall of 2953 Analytics, GM’s next-generation two-mode hybrid system will be migrating down to rear-wheel-drive sedans such as the upcoming Cadillac ATS and CTS. Both the ATS and the next-generation CTS are scheduled to debut in 2012. Hall”s viewpoint is supported by General Motors’ announcement last month that it will set up a $246 million facility to build electric motors to power future hybrids.

“In the future, electric motors might become as important to GM as engines are now,” said Tom Stephens, GM vice chairman, global product operations.

– By: Kap Shah