Black cab firm facing China crisis

THE prospects of hailing a black cab on the streets of Beijing have diminished following today's admission from taxi maker Manganese Bronze that its Chinese licensing deal is in danger of collapse.

Chief executive Ian Pickering said vehicle maker Brilliance China Automotive (BCA) had missed its £600,000 payment due to Manganese for August and it was unclear whether Chinese production of the black cab would start next year as planned. Pickering said BCA was in 'some difficulty' following the recent resignation of its chairman, who is thought to be under investigation by Chinese officials.

Manganese had received just £900,000 of the £2.7m in initial payments owed to it by BCA. The deal also provides for it to receive production-based royalties.

The troubles in China are another blow for Manganese, which revealed today it had slashed its full-year dividend from 3p a share to 1p after reporting a barely-changed pre-tax loss of £2.9m. The components division suffered a £1.1m operating loss. Although it was profitable in the second half, the loss virtually wiped out the £1.3m profit from taxi sales, which were flat at 2602 vehicles.