Smith Electric Vehicles (SEV) has pulled out of its partnership with Ford US to jointly develop an electric version of the Transit Connect for the American market.
The Wearside-based company wants to concentrate on supplying its Newton truck, which is in demand since SEV US Corp was established earlier in the year.
There are already orders for 255 vehicles in the US, the company reveals.
As a result, the company, which started production at a new plant in Kansas has 'mutually agreed' to terminate the development project with Ford.
A spokesman for SEV says: "The Smith Newton is doing even better than we expected in the US."
He adds that the partnership "did not justify the investment requirement and limited working capital available to support the growth of Newton".
However, the company remains Ford of Europe's official partner on commercial electric vehicles.
Ford US has now turned to electric vehicle manufacturer Azure Dynamics, with plans to deliver an all-electric Ford Transit Connect for the US and Canada by next year.