Black cab maker banking on China

Commenting on the company's performance in 2009, chief executive John Russell said: "2009 was a difficult year for our UK taxi manufacturing operation with significant discount and sales incentives to stimulate the market combined with price pressure and restricted terms from fragile UK suppliers. Our UK consultation process is almost complete which will lead to a smaller lower cost UK operation with a much greater level of supply from China. The start of production in Shanghai was a major strategic breakthrough and some freeing of credit markets will see us make greater progress towards our international ambitions. Current trading continues to be adversely impacted by the wider economic environment." Manganese Bronze's UK sales for the year amounted to 1,724 vehicles (2008: 1,951 vehicles) in "challenging market conditions" and the company made a pre-tax operating loss of £7 million (2008: £5.4 million loss). Among hits highlights of the year, the group had begun production of its TX4 model (pictured) at Shanghai LTI – its joint venture with Geely in China and was on plan to meet aggressive component cost reduction targets for Chinese produced parts for UK production – over £1,200 per vehicle had now saved and a further £800 is expected within six months.