Taxi Driver Online

London taxi maker Manganese warns on losses, jobs

* Looking at restructuring loss-making UK operations

* Warns of possible job cuts

* Vehicle sales for 8 months to end August fall 9.1 percent

* Shares fall 19 pct to four month low


LONDON, Sept 30 (Reuters) - Manganese Bronze Holdings (MNGS.L), maker of London's trademark taxi cabs, issued a profit warning on Wednesday and said job losses were likely as part of a restructuring of its loss-making British operations.

"Overall, while group operating performance is expected to show year on year improvement, the outcome for the full year is expected to be a loss below current market expectations," it said.

It is starting formal consultation with its workforce and others to examine ways of returning its UK operation to profitability, the company said in a statement.

"The consultation will be wide ranging and will review all options including rationalisation of the current manufacturing operations which could result in a number of redundancies," it said.

Manganese said trading in the UK continued to be negatively impacted by the recession and that lower volumes with high discounts and marketing initiatives had resulted in continuing losses.

Overall vehicle sales for the eight months to end August fell 9.1 percent to 1,207 vehicles.

"The manufacturing breakeven level continues to be approximately 2,000 vehicles per annum," it said, adding that UK sales are expected to remain below that level.

Shares in the company were down 18.7 percent at 157 pence by 0715 GMT and at their lowest level since late May.

Even bigger job losses now the E7 judgment is out!!

Who in their right mind would buy a TX with all this uncertainty going on with LTI?

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Not sure....but I suspect when the factory closes you're area will see a massive influx of budding cab drivers

CC

I don't think there are 100 people employed at LTI & they would all go into Coventry anyway.

Some would also go to work for the Mercedes Vito Taxi people that are also in Coventry.

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Would that be the one without the rear wheel steer thats no longer needed

I believe they do the one with the rear wheel steering, because all the other suppliers do their own.

Why do you ask Mr Skippy41 ..... are you getting interested in a Merc WAV now?

Would yours be with or without the 25 foot turning circle?

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No not interested ,just wondering due to the judgment it would make them a bit cheaper for those who want one if they did not have to modify them

That's very true indeed ..... & if they go into London & throughout the country as they are sure to do, it will make them fiercely competitive between all the different brands.

There must be nearly 10 makers out there now & with you telling me that Skoda are to make one shortly, people will be waiting for that one to come out, because after all Skoda is now a very good make.

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The information I have received is that they may use the superb chassis and fit the 2.5 VW with auto box.
But there is also the other option on the cards and that is they get permission from VW to modify the transporter

That's one you don't want ..... lovely WAV but the mpg is scandalous!

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You're right.....he doesn't want one!

CC

Its not as bad with common rail, the PD only achieved around 28 mpg in urban conditions, the CR now manages 35 but with the DSG box

as opposed to a TX4 auto which does even less

More info


LONDON (SHARECAST) - Black cab manufacturer Manganese Bronze continues to bleed money in the UK and has opened negotiations with its workforce and other stakeholders to find ways of returning the company to profitability.

Among the solutions being considered are a rationalising of the current production facilities and a concomitant reduction in the workforce.

Trading in the UK continues to be weak, with sales in the first eight months of the year down 9.1% to 1,207 vehicles from 1,328 vehicles in the corresponding period of 2008. The company needs to sell around 2,000 vehicles a year to break even and although lower cost Chinese parts used in the production process should have lowered the break-even point, the bar has been raised again by price increases from UK suppliers and the need to offer potential customers discounts in order to secure sales.

The 48% owned joint venture in China, Shanghai LTI (SLTI) is seen as the best hope of securing the long term future of the group but the speed of the ramp up of international sales has been below expectations.

SLTI has started production and has sold 109 vehicles in the Asian market and a further 15 vehicles to international markets but sales growth has been hampered by a number of factors, ‘the principal one being a shortage of international customer finance facilities.’

Customer orders for 150 vehicles are in limbo pending resolution of a number of issues, most of them relating to financing.

As at 28 September the group had net cash and cash equivalents of £3.4m, and net debt of £6.7m after stocking loans of £10.1m representing the stocking finance associated with finished goods inventory.

It sure is, a guy from round our way has a VW automatic, I think he struggles to get into the 30's for his MPG.