Under the so-called Zero Emission Vehicle (ZEV) Mandate, which came into force this year, at least 22% of cars sold must be classed as zero emission. If manufacturers fail to hit their quotas, they could face fines of up to £15,000 per car.

The American automaker said the cost-cutting measure would help it compete with Chinese rivals in the face of slowing demand for electric vehicles.

Automobile manufacturing giant Ford has announced 4,000 job cuts across its European operations as the industry bemoans stalled electric vehicle sales in the market.