Development of the all-electric Morgan EV3 three-wheeler has been put on hold due to problems between the automaker and its drivetrain supplier.
Steve Morris, managing director of Morgan, told Autocar the company has stopped work on the EV3 as Morgan's "current EV powertrain supplier is no longer able to fulfil the project within the terms of the contract".
He said Morgan had expected Frazer-Nash Energy Systems to supply a "turn-key powertrain" for the automaker's first-ever electric car.
Morris says the company has "since realised we need more EV know-how inside our Malvern headquarters", and will be hiring to fill that void.
For its part, Noamaan Siddiqui, managing director of Frazer-Nash, said the prototype vehicles were "very promising", but the supply deal had fallen apart due to "a number of contractual reasons".
Morgan's managing director was keen to point out the EV3 project isn't dead, and announcements about the EV3 and future electric cars would be made "in due course".