Black-cab maker on road into red

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Manganese Bronze today reported a 37.5% crash in sales in the first nine months of the year 800 fewer than last year at 1628. Cost-cutting and lay-offs at its LTI factory in Coventry, where the new TX4 taxi is made, have taken Manganese's break-even point down to 2000 cabs this year but even that is not attainable.

"The UK market remains challenging and the board does not expect UK sales will exceed the manufacturing break-even in 2008," the company said.

It said it had finished remedial work on 400 TX4s after a dozen fires in cabs this year. Another 600 models remain off the road and a further 4400 vehicles are awaiting work.

Manganese admitted it could face driver compensation claims on top of the £4 million it has already spent fixing the problems.