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| Manganese Bronze to call in administrators | |
| (8 days later) | |
| Manganese Bronze, the maker of London's black cabs, is to call in administrators PricewaterhouseCoopers after failing to secure new funding. | |
| The announcement follows the suspension of its shares earlier this month, after a fault with the vehicle's steering box led to over 400 of them being recalled. | |
| Manganese Bronze, which is based in Coventry, had been trying to secure a loan from Chinese shareholder Geely. | Manganese Bronze, which is based in Coventry, had been trying to secure a loan from Chinese shareholder Geely. |
| The company has made losses for the past four years. | The company has made losses for the past four years. |
| Manganese Bronze, which employs 300 people, earlier this month also stopped sales of its new TX4 model. | Manganese Bronze, which employs 300 people, earlier this month also stopped sales of its new TX4 model. |
| The problem affects the vehicles' power steering and arose in a new design for the box, sourced from an unnamed new supplier since February. | The problem affects the vehicles' power steering and arose in a new design for the box, sourced from an unnamed new supplier since February. |
| The company said it had not put anyone in danger but "in extreme cases, it could affect the ability to steer the steering wheel". | The company said it had not put anyone in danger but "in extreme cases, it could affect the ability to steer the steering wheel". |
| It said in a statement that "the board remains hopeful that the fundamental strengths of the company, the TX4 model and its global reputation will provide the platform for a successful business in the future". | It said in a statement that "the board remains hopeful that the fundamental strengths of the company, the TX4 model and its global reputation will provide the platform for a successful business in the future". |
| Chinese partner | Chinese partner |
| The supplier of the part was a Chinese firm introduced by Geely. | The supplier of the part was a Chinese firm introduced by Geely. |
| Manganese and Geely signed a joint venture agreement in 2006 and own a factory in Shanghai that produces taxis for the international market. | Manganese and Geely signed a joint venture agreement in 2006 and own a factory in Shanghai that produces taxis for the international market. |
| The company was already in some financial difficulty before the latest problem emerged. | The company was already in some financial difficulty before the latest problem emerged. |
| Sales have been in decline - the Coventry-based firm sold 1,502 taxis in the UK last year, compared with 1,653 in 2010, a fall of 9.1%. | Sales have been in decline - the Coventry-based firm sold 1,502 taxis in the UK last year, compared with 1,653 in 2010, a fall of 9.1%. |
| In January, Manganese Bronze had to issue a profit warning, saying that it had made no profit in 2011 and could fall short of expectations this year. | In January, Manganese Bronze had to issue a profit warning, saying that it had made no profit in 2011 and could fall short of expectations this year. |
| The group blamed the weak UK economy, uncertainty over the global economic outlook and a delay in fulfilling an order for 1,000 taxis from Azerbaijan. | The group blamed the weak UK economy, uncertainty over the global economic outlook and a delay in fulfilling an order for 1,000 taxis from Azerbaijan. |
| For the first six months of 2012, Manganese Bronze recorded an operating loss of £3.1m on revenues of £34.3m. | For the first six months of 2012, Manganese Bronze recorded an operating loss of £3.1m on revenues of £34.3m. |
| Then in August, it discovered an accounting error had caused it to understate past losses by a total £4.25m. | Then in August, it discovered an accounting error had caused it to understate past losses by a total £4.25m. |
| The company's shares were last quoted on the stock exchange at 10 pence each, down from 35p a year ago. | The company's shares were last quoted on the stock exchange at 10 pence each, down from 35p a year ago. |
| Much of the company's shares are closely held: Geely owns 20%, while another quarter is owned by UK asset manager Toscafund. | Much of the company's shares are closely held: Geely owns 20%, while another quarter is owned by UK asset manager Toscafund. |
| Peter Coulson, West Midlands's regional officer for the Unite union, said: "This is one of the last remaining car manufacturers in the Coventry area and it's an iconic vehicle. | Peter Coulson, West Midlands's regional officer for the Unite union, said: "This is one of the last remaining car manufacturers in the Coventry area and it's an iconic vehicle. |
| "So it's absolutely paramount that the company is actually continued as a going concern and it's Unite the union's responsibility as well as company's responsibility to make sure that it goes on as a going concern." | "So it's absolutely paramount that the company is actually continued as a going concern and it's Unite the union's responsibility as well as company's responsibility to make sure that it goes on as a going concern." |
| He added the Manganese Bronze board met last week to try to resolve the situation but was unable to do so. | He added the Manganese Bronze board met last week to try to resolve the situation but was unable to do so. |