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General

Manganese Bronze to be sued by Cab drivers

31/03/11

In a stock market announcement on Wednesday, the company said it was being pursued for alleged financial losses suffered by the taxi drivers following the incident.

More than 5,000 taxis were affected in 2008 when 12 under-bonnet fires in early production models of the TX4 taxi prompted Manganese Bronze, which is backed by Chinese car maker Geely, to recall vehicles.

Approximately 4,400 taxis were fixed swiftly in workshops, it is understood, but 867 required more substantial modifications. The recall ran from September 19, with the last taxi back on the road by November 11.

Manganese Bronze set aside £3.77m to deal with the cost of the recall – with total costs set at £2.6m so far – but now says it has become aware of a claim form issued at the High Court.

The extent of the losses being sought by the taxi drivers is unknown. As well as loss of income, one of the claimants is thought to have suffered damage to possessions after his taxi caught fire.

By Graham Ruddick of the Telegraph

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