London taxi manufacturer Manganese Bronze yesterday (26 January) warned that its annual financial results were expected to be below current market expectations.
In a trading update, the company said it had identified a higher than expected warranty spend, mainly related to radiator rectifications to its TX4 model (pictured); a problem that had now been resolved. UK sales remained soft during 2009, with a total of 1,724 vehicles sold reflecting, the company said, the sluggish UK economy and caution among drivers. International sales were impacted by the availability of financing, with 212 vehicles sold.
Customer reaction to the Shanghai built London taxi had been positive and the current run rate was consistent with 2010 sales of 1,000 vehicles in international markets.
A previously announced consultation process concerning lay-offs in Coventry was nearing completion and a further update will be provided at the time of the company's full year results.
The impact of the higher than expected warranty spend and lower than expected sales meant that the outcome for the full year was now expected to be below current market expectations, Manganese Bronze concluded.
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