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China taxi on time
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01/08/2008
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Posting its results for the first six months of 2008, Manganese Bronze, the manufacturer of the distinctive London taxi, said prototype production had commenced at its Chinese Joint Venture company and its plan to start commercial production of London taxis in Shanghai later this year was on course.
The company said it was also on plan to meet aggressive component cost reduction targets for Chinese produced parts for UK production.
However, Manganese Bronze said UK sales performance continued to be adversely impacted by current economic conditions, particularly in London.
Agreements had been signed to develop both a battery powered, zero emission urban taxi and a fleet of hydrogen fuel cell taxis for 2012 London Olympics.
Commenting on the results, group chief executive John Russell said: "We are delighted with the substantial progress we have made with our joint venture in Shanghai during the first half of the year. We are very pleased to have started prototype production on schedule and within budget and to have passed this key milestone on the journey to commercial production of the world famous London taxi in China. In addition we are pleased with the strong performance of the Group's parts and finance operations in the period under review.
"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 actions we have taken to reduce our build rate and take out cost have been timely and effective.
"We are focused on three issues for the remainder of 2008 and 2009: managing our cost base to optimise UK profitability and offset any further risks in these uncertain market conditions; achieving the challenging cost, quality, and timing objectives that we have set for TX4 taxi production in Shanghai; and fulfilling the international sales opportunities for TX4(pictured). The successful implementation of these actions will realise our vision to make the London taxi a successful global icon and deliver a marked improvement in our future scale and profitability."
Overall turnover declined by 7% to £42.4 million (six months ended 31 January 2007: £45.5 million) while pre-tax profit was £1.5 million (six months ended 31 January 2007: £0.7 million).
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Author
Ken Hurst
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