Taxi firm looks to China as sales fall

The company said that trading in the UK continued to be impacted by the uncertain macro economic conditions. Vehicles sales for the four months to the end of April were down 18.8%, to 699 vehicles versus 860 vehicles in the comparable period last year. However, Manganese Bronze said this performance was broadly in line with expectations and well ahead of the UK car market which is down 28.5% for the four months to the end of April. Earnings continued to be negatively impacted by the strength of the Euro, which had increased the cost of engines purchased from Italy, and the lower level of sales. Shanghai LTI, the joint venture in China, offered the best potential to secure a long term profitable future by significantly reducing the cost base both internationally from Shanghai and in the UK, and an over-reliance on a single market. This should enable growth in international sales and a return to profitability for the Group. Commercial production in China began in January 2009 and was followed up by the launch of the vehicle at the Shanghai Motor Show last month. A total of 8,000 vehicles will be produced in Shanghai over three years, with deliveries starting in mid 2009. Manganese Bronze said that due to ongoing losses and the depressed nature of the US advertising industry, the decision had been taken to close the group’s operation in the US, London Taxis North America but would not significantly impact its ability to sell vehicles into the US.