Black cabs to be made in china

cabs is to cease in this country for the first time since it began more than 60 years ago, with production shifting to China.

Bodies and chassis for the latest TX4 model will merely be assembled at manufacturer Manganese Bronze’s London Taxis International plant, in the latest blow for Britain’s car industry.

The decision will mean the loss of 60 jobs at the plant in Coventry.

Manganese is also considering a deal to give its Chinese partner a majority stake in the company.

It said it had no choice but to cease manufacturing after “the only viable UK supplier” of the primer coating (effectively the first undercoat sprayed on to the vehicle) said it would stop production from August.

Chief executive John Russell said underlying economic pressure had helped force the decision.

“2009 was a difficult year for our UK taxi manufacturing operation with significant discount and sales incentives to stimulate the market combined with price pressure and restricted terms from fragile UK suppliers,” he said.

Manganese sold 1,724 cabs last year, down from 1,951 in 2008, and had to offer discounts amounting to 5% of total sales. Its operating loss rose from £5.4 million to £7 million.

Manganese also announced that it was in talks to for another share placing at 70p a share, which would give it Chinese partner Geely a controlling stake. Geely has 23% of Manganese and owns 51% of their joint venture Shanghai LTI. The taxi firm also plans to transfer down to the junior AIM stock market.

Evening Standard

Published by Legalledoff

Leave a Reply


Switch to our mobile site