I don't think the problem is just the crazy cost of these things.
It's the running costs in terms of fuel and maintainance that simply makes them not a viable option to anyone who has a choice.
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| Aspirations of Mark Fryer of LTI http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=2&t=9730 |
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| Author: | JD [ Fri Oct 17, 2008 2:49 pm ] |
| Post subject: | Aspirations of Mark Fryer of LTI |
Aspirations or just pure wishful thinking? In 2006 Manganese Bronze struck a deal with Chinese motor manufacturer Geely which amounted to £19.85m. In 2007 shareholders agreed that deal which was financed by way of shares amounting to geely owning 23% of Manganese Bronze and having two seats on the board of directors. If the same deal was struck today Geely would own 48% of Manganese Bronze. The actualities are that since the deal was struck the market capitalisation of Managanese Bronze has halfed. In 2006 Manganese Bronze finance director Mark Fryer said the deal, when finalised, would "increase the appeal of the iconic vehicle around the world". He went on to state that "There are more than one million vehicles used as taxis in China, and the London taxi will add to the choice available to the Chinese consumer," Mr Fryer said. "Big cities such as Beijing and Shanghai offer major opportunities but Geely has more than 1,000 dealerships across China so it's a truly nationwide prospect." As well operating as regular taxis, the vehicles will be sold as limousines to hotels and to wealthy private owners. If I could stop there for a moment and concentrate a few minds on what Manganese Bronze said recently about the chinese taxi market? In stark contrast to what Mark Fryer said in 2006 about the expectations of these vehicles operating as regular taxis, Geely/Manganese Bronze said recently that they do not expect Chinese taxi drivers to purchase these vehicles. That won't surprise anyone who reads this website but it does say an awful lot about the make believe world in which the directors of LTI actually live? Heavy subsidies might achieve Mark Fryers aspirations but even if Geely subsidise these vehicles in the short term such a policy is unsustainable long term. Mark Fryer went on to add that "the high cost of vehicles as well as export fees have made overseas growth difficult." In other words consumers throughout the world find the vehicle overpriced for whats on offer? The same applies in the UK, we all know that where LTI are subject to competion they cannot compete and that is a matter of fact. The reason why they cannot compete is because their vehicle is vastly overpriced. The Uk is a captive market but not by popularity of vehicle but by regulatory conditions. London is the linchpin that holds Manganese Bronze together and without it the company would have probably folded long ago. Back in 2006 Mr Fryer said "There will be no redundancies as a result of this new venture, If anything we will be recruiting people to support the joint venture." The fact is, that in spite of Mark Fryers optimism there have been redundancies and in all probability there will be more in the coming months as sales decline. Some time ago I predicted the end of the road for LTI in this country and I laid out my reasoning why, my sentiment has not changed, in fact that sentiment is stronger now than it was then. LTI have been aware for a long time that their product was unsellable outside the captive UK taxi market and that is what brought about the Boardroom battle of 2003. Those with foresight won the day and the direction of LTI changed but the product itself is a white elephant based on current price. I think the Geely deal has probably come at least four years too late for LTI but in any case it would not have saved the company in this country as they are being overtaken by events beyond their control. In order for LTI to survive in this country they need to drastically cut costs and increase sales. Both are unrealistic based on their current setup and events beyond their control. Manganese Bronze know this and that is why they are pinning their hopes of survival on the cheaper chinese vehicle in the hope they can secure desperately needed foreign markets? Those councils that still apply restrictive conditions of fitness should look closely at their policy because LTI are close to collapse in this country and it is irresponsible of them not to take this consideration into account. Events will happen and they will happen fast so be warned and remember where you heard it first. Regards JD |
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| Author: | gusmac [ Fri Oct 17, 2008 4:48 pm ] |
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I concur completely. The only places they sell in any numbers are the places which require them as a condition of fitness. When they have to compete for sales, they fail miserably. Their product is just not worth the price asked for it. Unless they can produce a better quality product for at least £10K less, they are fecked. Times are hard at the moment and are likely to get harder. Drivers need to cut their costs. £35 -40K for a TX is just too much wedge to be parting with at the moment. The next couple of years will be survival of the fittest. LTI aren't even close to being fit. Their own directors know this, why else have most of them sold their own shares? Market forces are going to kill them off. Nothing surer. Their ship was already sinking when the under-bonnet fire fiasco came along and torpedoed any faith anyone had left in this overpriced product. LTI's fate is plain to see, the writing is on the wall. The turning circle rule which has protected them for years will follow them into history's dustbin. Soon their vehicles will be no more than a memory kept alive by collectors and enthusiasts. |
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| Author: | Sussex [ Fri Oct 17, 2008 6:18 pm ] |
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I don't think the problem is just the crazy cost of these things. It's the running costs in terms of fuel and maintainance that simply makes them not a viable option to anyone who has a choice.
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| Author: | skippy41 [ Fri Oct 17, 2008 7:54 pm ] |
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Hopefully the up and coming Liverpool court case will be the final nail in the coffin 
If the court decides that Liverpool has broken disability laws (we know they have) London will have to come into line as well, and any other place that still insists on LTI vehicles only |
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