Fisker Automotive furloughed its entire U.S. workforce this week, according to Reuters.
“This is a common practice, particularly in the automotive industry, to manage costs and operations based on current activity levels and commercial requirements,” Fisker, which has just over 200 U.S. employees, said in a statement.
The move comes about a month before the cash-strapped company, which launched the Karma plug-in hybrid in late 2011, faces a loan payment to the U.S. Department of Energy.
The company, which has not produced a single car since July, is attempting to cut costs while it searches for a business partner.
Delays in the production of the Karma, Fisker’s luxury plug-in hybrid, led the Department of Energy to freeze its $529 million loan. Fisker faced additional setbacks when its chief battery supplier, A123, went bankrupt.
Fisker seeks investors to finance their second hybrid plug in, the Atlantic. Their efforts have so far been unsuccessful in China, according to Reuters.