London black cab maker resolves steering defect

LONDON Fri Nov 16, 2012 5:00am IST

Stocks

   

LONDON (Reuters) - PricewaterhouseCoopers, administrators to Manganese Bronze Holdings Plc MNGS.L, said on Thursday it had found a solution to the steering box defect affecting its new TX4 model.

The maker of London's black taxi, which has been reporting losses since 2008, recalled about 400 TX4 London taxis last month after it found a defect in a steering box that was introduced in February.

PwC said it had secured supply chain availability and logistics from a UK supplier to begin replacing the faulty steering boxes, which it aims to have completed by mid-December.

"Having secured replacement parts for the entire recalled fleet, the program to fit these new components has been devised so that all recalled fleet cars will be fitted with new replacement parts by mid-December," said Matthew Hammond, joint administrator and PwC partner.

The steering box is a design from a supplier in China, which was introduced in the company's Coventry factory in late February.

"We are working to get taxis back on the road as quickly as possible but clearly, with the large number of vehicles affected in London and also in the regions, this work will take several weeks to complete," said Hammond.

Manganese Bronze appointed accountants PricewaterhouseCoopers as administrators in October to look at options including the sale of the company if funding cannot be arranged to save it.

PwC has cut 156 jobs at the company last month, with the majority axed at Manganese Bronze's manufacturing site in Coventry, while other positions went at dealerships across Britain.

Manganese Bronze, which is 20 percent owned by China's Geely Automobile Holdings Ltd (0175.HK) has been losing market share to Mercedes Vito taxis sold by Eco City Vehicles (ECV.L).

(Reporting by Stephen Mangan; Editing by David Gregorio)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Cipla Shares

Cipla Shares

Cipla jumps after key generic launch.  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit.  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks.  Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter.  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage