Taxi Driver Online

Mercedes to take closer control of its black cab maker


Mercedes-Benz is to take closer control of the manufacturing of the new-style London black cab that has won a quarter share of the market in new vehicle sales among London cabbies from rival maker Manganese Bronze.

Eco City Vehicles, developer of the taxi based on modifications to the Mercedes Vito light van, said it was reviewing its manufacturing arrangements as it conceded that sales in the first half of 2011 had been subdued because of tough trading conditions facing London cabbies and the launch of an upgraded model.

But Peter DaCosta, chief executive at ECV, said plans by the London’s mayor Boris Johnson to force up to 3,000 taxis older than 15 year off the road by next January should boost trade.

Many London cabbies credit themselves for helping propel Mr Johnson to victory against incumbent Ken Livingstone in the mayoral election of 2008, after he backed their calls end to costly mid-year inspections.

But the mayor is now risking the ire of some of his cabby supporters with plans to retire more of one in eight black cabs in a bid to help improve air quality in the capital.

Mr DaCosta added that the roll-out of its latest Vito black cab model would help it compete with the TX4 model offered by market leader Manganese Bronze, which until 2008 held an effective monopoly in the London market.

The Vito cabs, modified to meet the tight 25ft turning circle requirements historically stipulated for vehicles used for hackney carriage hire in the capital, are made under licence for ECV.

But talks are under way to transfer responsibility from ECV to Mercedes-Benz for the modification of Vito vans into taxis by contractor Penzo. The Coventry-based supplier is coincidentally based minutes away from the factory of rival Manganese Bronze in the Midlands.

Mr DaCosta said the transferring of contracting responsibilities to the German automotive group would help “de-risk” the Aim-quoted business. ECV owns a majority stake in One80, which holds the patent and intellectual property rights to the rear-wheel steer used in the Vito taxis which allows them to meet the turning circle requirements.

The company estimates it now accounts for over one in four of new black cabs sold in the capital.

The revised arrangements would still allow ECV to benefit from any increase in production volumes for the taxi even though they effectively transformed the company from the maker to the seller of the vehicle, he said.

Revenues at the company held steady at £24.7m in the year to December, as a move into a small operating profit helped trim pre-tax losses from £393,000 to £265,000 for the year.

Sales of new Vitos increased from 398 to 477 last year, while sales of second-hand vehicles also rose.

Shares in the company, which have declined by a quarter to 4.13p over the year, were suspended on Friday following the failure to secure a sign-off on its annual accounts by auditors as required by the June 31 deadline under the terms of its Aim quotation.

Mr DaCosta said he hoped the “embarrassing” delay would have been rectified by the end of Friday, allowing its shares to resume trading.

source: http://www.ft.com/cms/s/0/

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

What makes me wonder is if these companies are so successful....how come they always post losses?

CC

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Even though the vito is a success everywhere else, sales have fallen in London due to the high cost of buying the London spec one,that comes in at 42K with the interest added, and the rear wheel steer is always going wrong, one owner has had his repaired 9 times

Could you tell me where the vito is a success please....there's 2 in Carlisle.

CC

_________________
Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Only 2 :shock we now have 7 in the Borders
There will be many more across the Uk well they claim over 500 sold in London alone

I think you may be getting confused here skip.

The vehicle sold by allied is different to the one sold by eco city.

CC

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Sorry capt, but they are exactly the same vehicles but without the RWS
They all start out as vans and allied are not the only converters

I used to own a Vito ( older front wheel drive version) but experience taught me to leave well alone next time they are VERY EXPENSIVE to maintain my bills used to averagr £5000 a year and the rear wheel drive is useless in winter conditions

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

London has over a thousand on the road, and with the 15 year age limit coming in next year, that figure will certainly rise.

To be honest, i'd be happy to see Mercedes take over the whole operation, they're a big company with the financial backing, so I would'nt be left out in the cold if Peter De Costa's KPM operation goes pear shaped.

Who's that then?

essexexile

Mines in at S&B's on tuesday for it's 9th fix. Lets see if than can improve on those retards at KPM

Who's that then?

Mines had no problems apart from the buzzer activating during the first few weeks which was fixed by KPM.

Read it on the london taxi drivers forum

The buzzer is a warning to tell you the next instalment is due on your 42K cab

Oh that forum, alas I'm not a member on that one.

My life feels emptier for it too.

That said, I do have a modification booked in for August after telling a little white lie about ongoing rear wheel problems. And why not, if it improves my chances of trouble free driving then it will be worth a day off.

Alegidly they are going to weld the rear wheels in a strait line so it no longer works