This has been helped by the decision made by the Mayor of London, Boris Johnson to remove all cabs with expired taxi insurance quotes from the road once they reach 15 years old. Chief Executive of Manganese Bronze, John Russell, explains this has started to generate stronger sales in the black cabs second hand market.
“There is strong demand for two-, three- and four-year-old cabs, which should eventually feed back to the new-vehicle market,” states Russell.
Russell said “Our UK taxi business is one more trading at a profit”. He said that “London cab sales are slightly up on last year and we are starting to see the benefits of the new regulations which mean some 3000 cabs which are over 15 years old will come off the streets next year”.
According to Russell, because of the Mercedes Vito model that was released a couple of years ago, the classic Manganese cab is now regaining market share.
The first half losses for Manganese were cut from £4.9 million to £700,000 with the loss relating to its joint venture in Shanghai. Sales rose 16% to £38.7 million despite the number of taxis sold in the UK falling to 748 from 803.
London’s traditional black cabs maker said that strong international sales also will help the company’s profitability in the second half.
Manganese had a 2 year restructuring and over this time, reduced the number of taxis that it needs to sell to break even from 2000 to 1400 a year in the UK.