The launch of the Fisker Nina, a BMW 3-series rival that was set to go on sale in 2013, hangs in the balance as the company seeks new funding to develop the car.

Fisker has been forced to stop work on the factory where the Nina was set to be produced, following the suspension of a $529 million loan that had been offered by the US Energy Department from a fund intended to accelerate growth of companies building alternatively powered cars.

Read our first drive of the full production version of the Fisker Karma

The US Energy Department alleges Fisker has not hit targets set for production of its current vehicle, the Karma, although Fisker insiders say they are caught up in political infighting during the US election year.

As a result, Henrik Fisker says he will fund development of the Nina through private sources, but conceded it will take time to source the new support.

The news coincides with the announcement of a management reshuffle at Fisker. Company boss Fisker has moved to the role of executive chairman, with Tom LaSorda, Fisker’s vice-chairman, assuming control of the company.