Manganese Bronze calls in administrators after crisis
Tuesday 23 October 2012
The maker of London's world famous black cabs is to appoint administrators after failing to raise the cash it needs to save the business.
Manganese Bronze was said to be in talks with Chinese shareholder Geely, which owns 20 per cent, to pump £15m into the flagging firm, but yesterday said it was unable to secure funding "on acceptable terms" and could not continue as going concern.
The cash crisis was triggered by a recall of 400 of its TX4 London taxis and the suspension of sales after it discovered a defect with its steering boxes, introduced in production from a new Chinese supplier at its Coventry factory in February.
Manganese uncovered the fault after two cab drivers reported problems with steering, although there have been no crashes or injuries as a result.
Manganese, also under pressure from competitors like Nissan and Mercedes-Benz who are pushing into the market, warned that the recall and sales suspension would have a "material and detrimental" impact on its cashflow.
The company, whose London Taxi Company division makes about 2,700 cabs a year and has produced more than 100,000 vehicles since it started in 1948, has been loss-making for the past four years.
The company added that a "speedy resolution" of the product recall remained a top priority for the group, which is urgently contacting drivers of the 400 affected vehicles to make sure they are taken off the road.
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 3 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...