LeEco reaffirms plan to assemble EVs in China

The EV subsidiary of Chinese technology company LeEco has pledged to produce electric vehicles in China despite a shortage of cash.

The company last week issued a statement confirming plans to begin building an assembly plant late this year. The factory will be in Deqing in east China's Zhejiang province.

In August, the company disclosed plans for a $1.2 billion (8.3 billion yuan) plant that would produce up to 200,000 vehicles a year. Annual capacity subsequently will increase to 400,000 vehicles.

The Deqing site will be LeEco's first assembly plant in China. The company did not disclose when it will launch production.

LeEco also plans to produce EVs in the United States with the help of Faraday Future, a California-based company backed by LeEco founder Jia Yueting.  

But Faraday Future has suspended construction of the plant in Nevada after running out of cash to pay the construction company.

LeEco, based in Beijing, originally was a video streaming website. The company has diversified into a dizzying array of businesses such as e-commerce, mobile phones, TV sets, ride-hailing and even film making. 

Chinese media reported this month that the company's mobile phone and ride-hailing businesses have also faced cash shortages this year.