American car giant General Motors will write off six billion dollars as part of a reduction in production of electric vehicles and batteries.
The company also announced an additional cost of $1,1 billion due to the restructuring of its operations in China, Hrportfolio reports.
GM's competitor Ford also recently signaled that it plans to take a write-down in its electric vehicle business, amounting to as much as $19,5 billion.
Following Tesla's success, major American automakers have invested heavily in expanding their range of electric vehicles, including popular pickup trucks.
American buyers still prefer vehicles with internal combustion engines and hybrid models.
Sales of electric pickup trucks have not met expectations, and an additional blow was the elimination of the $7,5 tax incentive for the purchase of electric vehicles.
GM had planned to invest $35 billion in electric vehicles by last year to reach a production capacity of one million vehicles per year. It now intends to focus on reducing costs for new electric vehicle models, with a focus on new battery technologies.
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