Ailing cab maker LTI vows to stay in Coventry
http://www.coventrytelegraph.net/news/c ... -24930974/
STRUGGLING black cab maker LTI has issued an assurance that it will remain in Coventry despite a slump in sales which could see jobs axed.
In a meeting with city MP Geoffrey Robinson, managers of the ailing firm said they had no intention of closing the plant in Holyhead Road.
But they said they couldn’t rule out redundancies as the company battles to reduce its costs.
Bosses claim that they cannot see the market improving significantly in the short-term and need to make savings if they are going to weather the storm.
A report released this month showed overall vehicles sales for the firm had dropped nine per cent in the past eight months.
On Tuesday evening, Mr Robinson (Lab, north west) met with John Russell, the group chief executive of Manganese Bronze - the parent company of London Taxis International - to discuss the firm’s future plans.
Mr Robinson said: “It is still in the early stages of negotiations for LTI.
"The problem they face is that unlike companies such as Jaguar and Land Rover, LTI do not see the market increasing over the same period of time, that would be the short or medium term, and they need to reduce their costs.
“They cannot see the market improving significantly to previous levels at which they were a very profitable company.
“However, the company has no intention of seeing the Coventry plant closed, and it is now a question of finding a way to reduce the cost base.
“There are a lot of companies right now that are having to make savings due to the recession.
"But they seem very determined to stay in the city and are in talks with the union to ensure that they do all they can for the company and its staff.”
A 90-day consultation process has begun with more than 400 people, who are employed at the Coundon company, and the firm’s stakeholders to gain their views on changes to the business.
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