Cab maker ranks as a loss maker

LONDON black cab maker Manganese Bronze is likely to remain in the red for the rest of this year amid "challenging" trading conditions.

The firm - which has shifted production of the body panels and chassis for the iconic vehicle to China - said UK sales volumes fell 13 per cent in the first half of the year.

Despite a strong first quarter, sales of London taxis reversed 29 per cent year-on-year between April and June as airports shut due to Iceland's volcanic ash cloud.

Uncertainty over the general election, the end of the UK government's scrappage scheme and a new showroom tax which put up prices by 350 also dented sales.

Manganese's Coventry-based London Taxis International arm has manufactured the cabs since 1948, but has now moved to an assembly role. The cost crackdown also includes savings made from importing Chinese parts.