A switch to a Chinese supplier aimed at saving money could end up costing London taxi cab manufacturer Manganese Bronze millions after it had to recall 400 cabs because of a steering box fault.
Executives from Chinese car company Geely, which has a 20% stake in Coventry-based Manganese Bronze, were due in the UK today (15 October) to discuss the issue. News reports over the weekend suggested that Manganese switched suppliers earlier this year on Geely’s recommendation.
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John Russell, Manganese’s chief executive, said that the company faced a “very serious” cash squeeze. Trading in Manganese shares was suspended on Friday after he warned the company’s financial position was “unclear”.
Geely, which has already ploughed in GBP18.6m (USD29.8m) to support the Coventry firm, could increase its stake in Manganese if it offers further funding.
