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London taxi parts to be made in China

by Staff Writers
London (AFP) March 17, 2010
The iconic black London taxi is to be partly made in China, manufacturers announced Tuesday, with production of the body panels and chassis shifting to Shanghai.

Manganese Bronze, the leading manufacturer of the famous cabs, said the parts for its TX4 vehicles will be made in Shanghai, in a move costing 60 jobs at its plant in Coventry, west central England.

The company already makes taxis in Shanghai for the Chinese and international markets, under a joint venture.

Manganese's London Taxis International arm, based in Coventry, has manufactured the cabs since 1948, but will now switch to an assembly role.

The move "will lead to a smaller, lower-cost UK operation with a much greater level of supply from China," said Manganese chief executive John Russell.

"Because we are very much a British brand, and that was of immense value to our customers, it seemed the best option to maintain a smaller manufacturing presence in Coventry," said Manganese chief executive John Russell.

Top of the range TX4s can cost almost 37,000 pounds (56,800 dollars, 41,300 euros) from new.

Currently around 5,000 pounds of the 23,000 pounds cost of a taxi's components is spent with Chinese manufacturers.

Manganese's underlying pre-tax losses worsened to 8.1 million pounds last year from 6.2 million pounds in 2008.

"UK sales performance continues to be challenging as drivers' confidence to commit themselves to the purchase of a new taxi remains weak due to uncertainty about the general state of the economy," the firm said.



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