HONG KONG Reuters -- China Evergrande New Energy Vehicle Group LtdGroup Ltd said on Thursday it may have to halt production of electric vehicles EVs if it can't get fresh funding, after it delivered more than 900 units of its flagship Hengchi 5 model.
The EV manufacturing unit of the embattled developer China Evergrande Group said it was aiming to reduce costs through measures such as reducing staff numbers and improving management efficiency.
If it could not obtain financing of more than 29 billion yuan $4.2 billion in the future, it planned to launch a number of flagship models and to achieve mass production, the company said in a statement.
The Group is at risk of discontinuing production, because of the inability to obtain additional liquidity.
The unit previously said it would start mass production of its second EV model in the first half of 2023 and a third in the latter half of this year.
It said it was going to make 1 million vehicles a year by the year 2025.
In December, the unit said it was laying off workers and cutting the salaries of some employees as part of its cost-reduction measures.
The EV unit is the heart of the debt crisis, which has been the focus of the transformation plans of Evergrande, once China's top-selling property developer.
Since April 2022, the shares of the unit have been suspended.