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

The new agreement, which builds on an earlier announcement, calls for the German automaker to invest $5.8 billion in Rivian, a maker of electric vehicles.

October’s auto market saw plugin EVs at 23.5% share in France, down from 26.5% year on year. Classic hybrids (HEVs) were the only powertrain that saw YoY growth, with plugins losing ground, though faring better than combustion-only vehicles. Overall auto

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