Cab maker puts brakes on production
The UK producer of the black cab is making cutbacks because of the downturn
The maker of the iconic London black taxi has signalled that it would be looking at shedding jobs and cutting output as demand for its vehicles falls sharply.
UK-based Manganese Bronze said vehicle sales fell by more than a third to 1,628 in the first nine months of this year.
It said that, in response to the downturn, it had cut production at its Coventry factory by 15 per cent and was “implementing headcount reductions”.
The group was forced to recall 5,400 TX4 cabs in the UK in September after 12 cases of under-bonnet fires.
To date, nearly 400 vehicles have been modified and a further 600 are off the road awaiting work. All the cabs should be modified by the end of February 2009. The cost of the recall should total about £4m, the group said.
The group is looking beyond the UK for future growth. Its joint venture in China, Shanghai LTI, "offers the greatest potential to secure the long-term profitable future for the group," the company said.