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London Cab Maker Goes Bust
The maker of the distinctive London taxi is appointing administrators after it failed to secure a £15 million loan.
Earlier this month, Manganese Bronze said it had discovered a defect with new steering boxes in its TX4 models, which were introduced in production at its factory in late February.
Manganese said it discovered the fault after two cab drivers reported problems with steering, but stressed there had been no crashes or injuries as a result.
It warned that the recall and sales suspension would have a "material and detrimental" impact on its cashflow and said it was looking at options for the firm.
The group is urgently contacting drivers of the 400 affected vehicles to make sure they are taken off the road.
In its statement today, Manganese added that a "speedy resolution" of the product recall remained a top priority for the group, which will continue throughout the administration process.
The group's London Taxi Company division makes about 2,700 cabs a year and has produced more than 100,000 since it started in 1948.
Manganese, which employs nearly 300 staff and traces its roots to the 19th century as a maker of ship propellers, recently reported wider half-year losses of £3.6 million.
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