WASHINGTON, Jan 9 (Bernama-dpa) -- US automaker General Motors on Thursday announced it will record a US$6 billion charge linked to cuts in electric vehicle (EV) and battery production, reported German new agency dpa.
The company also flagged an additional US$1.1 billion charge tied to restructuring its China operations.
The move follows a similar warning from rival Ford, which recently signalled a US$19.5 billion write-down in its EV business. After Tesla's success, major US automakers invested heavily to expand EV offerings, including electrifying popular US pick-up trucks.
But EV pick-ups, including Tesla's Cybertruck, have fallen short of sales expectations.
The end of the US$7,500 federal EV tax credit in late September, coupled with looser fuel-efficiency regulations under the Trump administration, has added pressure on the market. US buyers continue to favour combustion-engine and hybrid vehicles.
GM had previously announced plans to invest US$35 billion in EVs by 2025 to reach an annual production capacity of one million vehicles. The company is now focusing on lowering costs for future EV models, including through new battery technology.
--BERNAMA-dpa
