THE maker of London’s iconic black taxis is in talks to
secure a £15m loan from its Chinese shareholder to stave off collapse.
Manganese Bronze hopes to secure the cash from Geely, the carmaker that
is one of its largest shareholders, with a 20% stake.
The
Coventry-based company is in dire straits after it stopped vehicle sales
and suspended its shares this month following the recall of 400 taxis.
Cabs were withdrawn from service after a fault was discovered in their
steering system.
If the two sides fail to agree a deal, investors fear the British group could be forced into administration.
Geely,
which formed a joint venture with Manganese Bronze in 2006 to transfer
production of the black cabs to China, is keen to protect its
investment.
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Transport chiefs in London are being urged to draw up a
contingency plan in case the troubled taxi maker Manganese Bronze goes
out of business.
Industry representatives are warning of a looming
shortage of black cabs because of a financial crisis at the loss-making
Manganese, which has halted sales of its TX4 taxis after a steering
fault was discovered.
John Robins’ who’s Taxi has been affected Said ”
I haven’t slept properly for three days” said taxi driver John Robins
whose TX4 taxi has been deemed unsafe by Manganese Bronze
“I’m the only earner in my family at the moment-my wife looks after our children”
His taxi was only two weeks old when he got a phone call on Sunday.
“They told me in no uncertain terms to stop using the cab and that its licence had been suspended”
After much searching he found a taxi available to rent, on a temporary basis for £180 a week.
He
wants Manganese Bronze to take back the TX4 entirely and to release him
from a deal under which he is obliged to pay £135 a week for four years
. It has declined to do so.
“They haven’t got a solution and they have not got the finances to sort this out”.
Boris
Johnson, the Mayor of London, has agreed to relax temporarily tough
emissions requirements for taxis so that black cabs used in other cities
can be brought in on a temporary basis.
Manganese has recalled 400
vehicles across the country, including 316 cabs in the capital because
of the defect. Dealerships have run out of replacement cars, leaving
frustrated taxi drivers without a livelihood. At a recent industry
liaison meeting, taxi drivers’ representatives asked Isabel Dedring,
London’s Deputy Mayor for Transport, to suspend a rule that bans drivers
in vehicles older than 15 years from plying their trade.
The rule,
introduced last year, has already meant the withdrawal of 1,495 taxis
from London’s streets and a further 994 are due to be retired by the end
of the year. The capital has 25,000 taxis.
Darryl Cox, secretary of
the London Cab Drivers’ Club, said that Ms Dedring had been urged to
plan for a scenario of Manganese ceasing trading: “It’s a worst-case
scenario. It’s a bit like the euro collapsing — everybody’s got an
opinion but nobody really knows what would happen.”
Manganese’s
shares have slumped by 75 per cent in a year and trading in the stock
has been suspended. The company, which made a £3.6 million first-half
loss, is in talks with Geely, its Chinese partner, in the hope of
securing funds.
The problem with Manganese’s taxis lies in a steering
box from a new Chinese supplier, introduced in April. There have been
two recorded instances of steering suddenly becoming locked. Some taxi
drivers, who are on hire-purchase deals, are trying to surrender their
vehicles entirely on the ground that they are not fit for purpose — a
conjection that Manganese is rejecting.
“We’re quite disgusted,
really. Many of us knew about this steering problem in August,” Mr Cox
said. “A lot of innocent people have been caught up in it.”
Most of
London’s taxis are Manganese models. The only other manufacturer with a
cab that fits the capital’s unique requirement for a tight, 25ft turning
circle is Mercedes, which makes a six-seat minivan, the Vito, that
costs £42,000.
Peter Da Costa, chief executive of Mercedes’ EcoCity
Vehicles division, said: “We’re obviously concerned about drivers caught
up in this and we’re helping them in any way we can.”
Rival taxi
manufacturers have suggested that London is far too reliant on two
suppliers and that the capital’s “conditions of fitness”, which set
exacting standards for taxi specifications, should be relaxed.
Donald
Pow, general manager of the Glasgow-based taxi maker Allied Vehicles,
said that the capital’s rules were anachronistic. “There’s a lack of
choice in the market. That choice is what drives innovation, price and
quality. It’s ironic, given that the turning circle in London is such a
bugbear, that it should be steering that’s caused this issue,” he said.
A Transport for London spokesman said: “We continue to closely monitor the situation.”
Dear all,
You may or may not already be aware of the product recall identified
below .
Officers have identified the Manchester licensed vehicles affected by this
recall and have spoken to most of the proprietors this morning . At this
stage we believe there to be less than 10 Manchester licensed vehicles
affected by the recall.
Officers have spoken to staff at the London Taxi Agent on Cross St , who
confirm the remedial action required to the affected vehicles is for a new
steering box to be fitted . It would appear that some of the vehicles have
already had remedial work undertaken , however we have been advised by
Cross Street that this has not rectified the problem and that further
remedial work will be required.
Manchester City Council is in the process of issuing formal suspension
notices in respect of the vehicles concerned .
Attached below are the press release and recall letter issued by LTC.
Regards
Jenette Hicks
Licensing Unit Manager
Licensing Business Unit
Manchester City Council
Neighbourhood Services
PO Box 271
Manchester
M18 8YU
And below is an account of the new Chinese cab from a Manchester owner:
I drive a 12 reg manufactured TX4 , fortunately the check
on the Chinese Taxi Company's website came up clear (let's hope it
works correctly).
The problem with these cabs is that the
Chinese just copy everything, where previously your components were Ford
or perhaps AC Delco now they are a Chinese copy and that copy is not
usually good enough until a few years of quality control, customer
complaints and warranty returns etc bring the problem of the component
to light.
The 12 reg I drive has now done 22,000 miles, it was
apparent from day one that the build quality was not near as good as the
56 reg I bought, the interior plastics scratch at the slightest knock,
the pedal rubbers are worn through, the door straps came away in the
first week, new rear wishbone bushes were needed at 10,000 miles, we
have had TWO new clutches, new tyres all round, the gear stick gaiter
broke in the first week, the gear knob no matter how many times you
tighten it up, soon comes loose again.
Many of these problems
are trivial but will need to be corrected when the cab is presented for
test each year along with other things that I have no doubt will
materialise, all are covered by warranty at the moment, but that
warranty will run out leaving the owner to pick up bills that he really
should not have to on a cab of maybe 3 or 4 years of age.
The
shame is that the concept of the vehicle is fabulous, it is ideal for
taxiing, passengers can get in and out quickly (unless they are old) and
on the SAFE side, the driver has control of the rear doors (unlike a
saloon car) especially at night with the drivers separate compartment
and hammer attack proof (is the Chinese copy still?) screen. The turning
circle gives incredible manoeuvrability for a big vehicle and with the
high driving position giving great vision, you can spot fares and gaps
in the traffic that you can take advantage of.
You can get a wheelchair passenger in too, well you can if you don't pull your own back out trying.
Unfortunately as good as the concept is, the delivery is not!
The
vehicle is too heavy, too heavy on fuel, suspension has always been
awful except for the first 2 weeks when it is brand new. Wind noise even
at 50 miles an hour is terrible coupled with the whistling system
laughably called an intercom which uses one of the stereo speakers (FFS
this is 2012)
Old people have always found it difficult to get in
and out- the solution a step stored in the boot that the driver has to
dig out, get down on his knees in the rain and dark to fix to give at
best a couple of inches relief PLEASE!!!!!!!!!! Has anyone ever used it?
We
all know already about TX4 engines blowing up, that was even before the
Chinese were involved, I fear the worst for the company, sales are
already in the toilet. This could be the nail in the coffin, don't
expect the Chinese to come to the rescue of the current shareholders, we
have been here before I think with a company that went by the name of
Rover.
I have it on good authority that not a single Greater Manchester licensed proprietor or driver has yet booked for the NTA conference.
In the Greater Manchester area only Trafford will be represented.
Not a soul from Stockport, No Mr Skidds, no Mr Dartington, not a single soul.
This
is a truly shameful situation, for many years Manchester TODA
effectively run the old NFTA, Manchester was the area which founded it.
In
my opinion this type of apathy is why you are going to lose your plate
values, you are going to see vehicles and drivers elsewhere taking your
work - and once it happens there will be no return.
Perhaps if
this is the type of interest which the taxi trade shows itself......then
perhaps you should just let nature take its course - In the dole
queue.
