Jobs to go as taxicab parts will be made in Shanghai

PRODUCTION of the body panels and chassis for the iconic black cab will be shifted to China in a move costing 60 jobs.

Manganese Bronze said the parts for its TX4 vehicles will be made in Shanghai after a key UK supplier's decision to cease production of a specialist painting process later this year.

Manganese's Coventry-based London Taxis International arm has manufactured the cabs since 1948, but it will now move to an assembly role.

The firm said its UK sales performance "continued to be adversely affected by current economic conditions", with the London market hardest hit.

Underlying pre-tax losses widened to 8.1 million last year from 6.2 million in 2008, with UK vehicle sales falling from 1,951 to 1,724.

Manganese, which now produces cabs in Shanghai for the Chinese and international markets under a joint venture, intends to make more savings on Chinese-sourced parts to help return its UK business to profitability.

Currently around 5,000 of the 23,000 cost of the cab's components is spent with Chinese manufacturers. Top of the range new TX4s can cost almost 37,000.

The firm is now saving around 1,200 per vehicle on Chinese parts, with another 800 to come this year and potentially a further 2,000 in savings on further outsourcing.