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Last Updated: Monday, 23 August, 2004, 12:47 GMT 13:47 UK
Black cabs hailed across the pond
By Guy Robarts
BBC News Online business reporter

Cab on Westminster Bridge
From Westminster Bridge.... to the Golden Gate Bridge
How many tourists have returned from a holiday in London wishing they could take home an authentic black taxi?

Now, Manganese Bronze, the company that makes the iconic cabs, is hoping to cash in on that longing.

By turning towards the export market, the firm hopes to reverse three years of losses.

Black cabs are already seen on the streets of San Francisco and Ottawa thanks to a distribution deal with London Taxis North America (LTNA).

Now the taxi maker is pushing ahead with plans to start production in Mexico and China.

Rough ride

Manganese Bronze itself has had a bit of a rough ride over the last year, with taxi sales down 11%, while its share price has slumped by almost 50% since May.

In February, it announced it was shifting some production to China after a slump in tourism and job losses across London's financial district hit the taxi industry and earnings for cabbies.

Black cab sales, which depend on consumers' willingness to spend money on taxi fares, are often seen as a barometer for the wider economy.

Black clouds gathered for the Coventry-based company in June when it warned that its results this year would not match analysts' forecasts.

U-turn

The US distribution deal and its other overseas ambitions could, however, mark a turning point.

Though black cabs cost $50,000 (�27,000) apiece, more than double the cost of a saloon taxi in the US, the attraction of its design is winning it a new fan base overseas.

Unlike New York's Ford Motor Crown Victoria taxi and Mexico City's Volkswagen Beetle, the black cab, sporting a roof 55 inches above floor level, can cater for tall people and even top hats.

Its 25-foot turning circle means cabbies can drop passengers off at one curb and pick up more at the opposite curb by making a quick U-turn.

"It's a very distinctive vehicle," says Ian Pickering, the company's chief executive. "And it provides a lot better comfort for people in the rear."

High cost

Despite the high cost taxi drivers still get savings from the vehicle, Mr Pickering says, because London cabs are a lot more "rugged and durable" than some of the saloon cars they normally use in North America.

An added financial attraction is that they use diesel power which is very unusual in the US.

"It's a lot cheaper to operate," Mr Pickering says.

But to really break into the US market and to grow its business overseas, Manganese concedes it needs to get the cost of the vehicle down.

This means starting production abroad.

"We're working on starting [an operation] in China and also in Mexico," Ian Pickering said.

"We would hope through having these overseas operations we can reduce production costs." The company's final results will be announced in September. On Monday its shares were trading up 5.25 pence at 160p.




SEE ALSO:
Black cab sales in reverse
03 Jul 03  |  Business
Black cabs to be made in China
07 Jan 02  |  Business
Taxi firm hit by tech costs
04 Mar 02  |  Business


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