- Coventry-based manufacturer Manganese Bronze in trouble
- Bosses had been in talks with key shareholder, Chinese car maker Geely
- Proposed £15million loan from China failed to materialise
- Manganese directors 'hopeful' that group will survive
- Group employs almost 300 in its London Taxi Company division
- Some 400 of its cabs are being recalled because of a steering fault
By Rob Preece
Published: | Updated:
It has been one of London's most familiar sights for more than a century, as instantly recognisable to visitors as the red telephone box or the Tube stop.
But whether the distinctive black cab will continue to come off the assembly line in years to come is now in question.
Coventry-based manufacturer Manganese Bronze, which makes the London taxi, is to appoint administrators and faces an uncertain future.
Warning light? The maker of the distinctive London taxi is to appoint administrators after it failed to secure a funding boost from one of its largest shareholders
Recognisable: A black taxi cab makes its way over Westminster Bridge in London. Manganese Bronze's London Taxi Company division has made more than 100,000 vehicles since 1948
The group made the announcement after it failed to secure a funding boost from one of its largest shareholders.
Manganese was reportedly in talks with Chinese private car maker Geely, which owns a 20 per cent stake in the firm, over a £15million loan.
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But the group said it had been unable to secure funding with various parties and will bring in administrators.
It said it 'remained hopeful' that the business would survive.
Motorised taxis first appeared in London at the end of the 19th century. There are now more than 20,000 licensed cabs serving the capital.
Funding blow: Manganese was reportedly in talks with Chinese private automaker Geely, which owns a 20 per cent stake in the firm, over a £15million loan
Distinctive: A London taxi driver rests on the bonnet of his vehicle as he takes a rest in 2009. Future production of the black cab has been thrown into doubt, although Manganese insists it is business as usual
The decision to appoint administrators comes after a torrid few months for Manganese, which employs almost 300 staff in its London Taxi Company division.
Earlier this month, the group recalled 400 black cabs due to a steering box fault.
It said it had discovered a defect with new steering boxes in its TX4 models, which were introduced in production at its Coventry factory in late February.
The fault came to light after two cab drivers reported problems with steering, although there had been no crashes or injuries as a result.
Parked: Black cabs stand idle during industrial action by London's taxi drivers in June 1966
Better view: A London cabbie peers from his window to survey the route ahead in this picture, taken circa 1960
Shiny model: A new London taxi goes on display at the 1958 Commercial Motor Show at Earls Court
Manganese has been trying to contact drivers of the affected vehicles to make sure they are taken off the road.
Before the administration announcement, it had warned that recalling and suspending sales of the vehicle would have a 'material and detrimental' impact on its cashflow.
In its statement today, Manganese said that the group would continue to operate during the administration process and a 'speedy' resolution of the recall remained a top priority.
TROUBLED FIRM'S PROUD HISTORY
Manganese Bronze traces its roots to the 19th century as a maker of ship propellers.
It has also produced motorcycles and, through its London Taxi Company division, is universally recognised for providing the UK with the black cab.
As well as its Coventry manufacturing facility, the division has six wholly-owned retail sites and has more than 60 service dealers supporting the network across the UK.
Manganese recently reported group-wide half-year losses of £3.6 million.
The group said it 'remains hopeful that the fundamental strengths of the company, the TX4 model and its global reputation will provide the platform for a successful business in the future'.
Manganese has been loss-making for the past four years as its London Taxi arm has been hit by a consumer spending slowdown and increased rivalry from competitors, such as Eco City vehicles.
The group’s London Taxi Company division makes about 2,700 cabs a year and has produced more than 100,000 since 1948.
Its newest model, the TX4, was launched in October 2006.
Earlier this month, Manganese boss John Russell vowed to keep the troubled group's meter running but warned that it was in a 'very uncertain situation'.
He said he would do everything possible to prevent the company from going under.
‘We’re focused on making sure that doesn’t happen,’ he said at the time. 'Clearly we’re in a very uncertain situation and until we get more accurate analysis we can’t answer that question.'
Mr Russell, the former boss of Harley Davidson in Europe, said investors had every right to feel aggrieved by the product recall situation and added that he shouldered full responsibility.
Wartime: Armed London cabbies with their camouflaged taxis taking part in an 'anti-invasion' exercise in October 1942. Their job was to resist 'invading Germans' who had established a bridgehead in Southend and were advancing on London through Epping Forest
Hands up, who's going on a trip: London taxi drivers take a group of girls from the Royal Sailor's Daughters Home for an outing to Burnham Beeches, Buckinghamshire, in June 1937
Well presented: A smartly-dressed cab driver stands by his taxi in a London street in 1933
New wheels: A woman gets into an Austin car fitted with a taxi body, shortly after it passed an inspection by Scotland Yard, in April 1930
Crash: Police and passers-by survey the wreckage of a taxi in Stoke Newington, London, in February 1930. Its front wheel lies on the pavement next to a sign bearing the instruction 'All Cars Stop Here'
