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A key element of General Motors' Advanced Propulsion Technology Strategy is the electrification of the automobile. The objectives of this strategy are reduced fuel consumption, reduced emissions and increased energy security/diversification. The introduction of hybrid vehicles was one of the first steps as a result of this strategy. To determine future opportunities and direction, an extensive study was completed to better understand the ability of Plug-in Hybrid Electric Vehicles (PHEV) and Extended-Range Electric Vehicles (E-REV) to address societal challenges. The study evaluated real world representative driving datasets to understand actual vehicle usage. Vehicle simulations were conducted to evaluate the merits of PHEV and E-REV configurations. As derivatives of conventional full hybrids, PHEVs have the potential to deliver a significant reduction in petroleum usage.