London Taxi Company Hoping for UK Government Bailout

The London Taxi CompanyLTIUnited Kingdom, 1982 > present3 models
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(LTC) went into administration on October 22, and the company says that it needs either a loan from partial owner GeelyGeelyChina, 1986 > present5 models
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or a bail out from the UK government to survive. 

The administration was caused by a recall and stop sale on LTC's TX4LTI TX4United Kingdom, 2006 > present2 versions
taxi due to a problem with the steering box. It began using a new steering box in February 2012 that could fail, and LTC had to recall 400 taxis and stop sales of new cars. Its owner Manganese Bronze Holdings also had to stop the company's stock being traded. The recall and stop sale also stopped cash flow, and the company did not have the reserves to survive. That is when it went into administration. 

Chinese automaker Geeley owns 20% of Manganese Bronze Holdings, and LTC is hoping that it will provide them a loan to save the company. If not, then LTC says that it needs a loan from the UK government. 

"We hope Geely is ready to come up with some assistance but if not then the government's going to have to help," said labor union official Roger Maddison.

According to Manganese Bronze Holdings CEO John Russell, LTC's sales have falled by half in the last two years. The faults for the TX4 was just the last that the company could take. 

Source: BBC