Taxi Driver Online

From; The Financial Times
(First posted by Captain Cab on 25th September 2008 at 12.42 am)
http://taxi-driver.co.uk/phpBB2/viewtop ... 280#111280

Black Cab Group Faces Claims Over Fires

25th September 2008

Manganese Bronze, London’s black cab maker, could face liability claims from at least 800 owner-drivers whose vehicles were pulled off the road last week following 12 unexplained engine fires.

The Licensed Taxi Drivers Association (LTDA) said on Wednesday it was unhappy about how long an investigation could take and that it would “pursue those responsible for compensation, and this could include London Taxis International [which makes the vehicles and is wholly owned by Manganese], the retailers, and very possibly Manganese and the finance companies”.

The LTDA said a claim could be significant. The affected vehicles – early models of the TX4 – cost between £30,000 and £40,000 including finance charges. If the association pursues a full claim, Manganese, which also has the lion’s share of the retail market through its Mann & Overton subsidiary, could face a liability of more than £30m.

In the six months to January 31, Manganese reported pre-tax profits of £1.5m on turnover of £43m.

John Russell, chief executive of Manganese, said that the company did not know yet whether the problem would have a material impact on its business. An investigation has been launched into the problem but he could not say how long it will take. The group has made no announcement to the Stock Exchange.

Manganese, which sells 60 per cent of the cabs bought in London, has felt the effect of the credit crunch and high fuel prices.

At the half year, Manganese said like-for-like sales had fallen more than 30 per cent. which was one of the reasons for its joint venture in China with Geely Automobile Holdings to produce TX4 cabs for the Chinese and international markets.

Mr Russell said an investigation would establish responsibility for the fires, and if and how compensation would be dispensed. However, in terms of the three-year TX4 warranty, Mr Russell said the company was ultimately responsible. “We will co-ordinate and manage any compensation processes that could arise from the investigation.”

Loss of earnings would be covered the company’s insurance, he said, but drivers were also required to do their best to minimise any losses by sharing cabs or renting replacements.

However, one cab driver said the situation was a crisis for the small community of London owner-drivers. “This is our Lehman Bros.”

Shares in Manganese rose 7½p to close at 299p.


Source; FT.com FINANCIAL TIMES


AND ALSO;


From; The London Daily News

'This is our Lehman Brothers' - Manganese Bronze Under Pressure

25th September 2008

The manufacturer of the TX4 black cab Manganese Bronze is facing one of its toughest days of trading today following a report in the FT outlining that a liability claim from "at least 800 owner-drivers whose vehicles were pulled off the road last week following 12 unexplained engine fires" could cost the company in excess of £30 million.

Maganese Bronze in the six months to January 31, reported pre-tax profits of £1.5m on turnover of £43m. Financial Times journalist Amanda Vermeulen quotes Maganese Bronze CEO John Russell: "Loss of earnings would be covered the company’s insurance, he said, but drivers were also required to do their best to minimise any losses by sharing cabs or renting replacements."

John Kennedy a black cab driver of thirteen years and columnist at the London Daily News has described the problems with the TX4 likening it to the collapse of Lehman Brothers by saying "this is our Lehman Brothers".

Anger is now being directed towards City Hall for not acting to protect the black cabbies with John Kennedy who has consistently called for the PCO to deal only with black cabs and a new office to deal with private hire, "it is patently clear that the PCO as it stands cannot deal with the concerns and requirements of the black cab community".

Kennedy speaking to BBC London 94.9FM went onto criticise mayor of London Boris Johnson by saying: "What is Boris Johnson doing? He should call a summit at City Hall to thrash out compensation packages to prevent drivers going to the wall. We are a laughing stock in the world given we are an Olympic city in 2012".

The London Daily News reported yesterday that RNS had not been informed by Manganese Bronze of the problems with the TX4's and any potential liability owed to the drivers by the company.


Source; The London Daily News

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Cab Drivers Threaten Legal Action Over Mystery Fires

25th September 2008

The makers of London black cabs could be sued for damages by 800 drivers whose taxis were ordered off the road in the wake of a series of mystery fires.

The Licensed Taxi Drivers Association said it was unhappy about how long an investigation into the cause of the fires would last. An inquiry was launched after seven cabs burst into flames in the capital this summer.

The association said it would "pursue those responsible" for compensation and that this could include manufacturer London Taxis International.

Affected TX4 models cost between £30,000 and £40,0000 including finance charges. If the association pursues a full claim, Manganese Bronze, which wholly owns LTI, could face a liability of more than £30 million.

John Russell, chief executive of Manganese, said the firm did not yet know how long the investigation would take. He said the inquiry would establish responsibility for the fires and how much compensation would be paid.

The fires, which did not injure anyone, are also being investigated by the Public Carriage Office and Transport for London.


Source; Evening Standard

_________________
Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

so much for the claims that the LTDA are doing nothing

ffs.....certain people using something like this to settle old scores....bet they arent even affected.

CC

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