Maker of London’s black cabs says it’s going bust, loses largest shareholder

<p>London cabs drive along Parliament Square, London, Monday, Oct. 22, 2012. The maker of London's world famous black cabs says it will go into administration after failing to secure an injection of cash from one of its largest shareholders. Manganese Bronze ran into trouble after discovering a defect with its new steering systems. The problem forced a recall and a suspension of sales that it predicted would have a

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Kirsty Wigglesworth

London cabs drive along Parliament Square, London, Monday, Oct. 22, 2012. The maker of London's world famous black cabs says it will go into administration after failing to secure an injection of cash from one of its largest shareholders. Manganese Bronze ran into trouble after discovering a defect with its new steering systems. The problem forced a recall and a suspension of sales that it predicted would have a "material and detrimental" impact on its cash flow. (AP Photo/Kirsty Wigglesworth)

By The Associated Press

LONDON (AP) — The maker of London’s famous black cabs said Monday it was going into administration after failing to secure an injection of cash from one of its largest shareholders.

Manganese Bronze’s rounded, limousine-like cabs are known the world over, but the company has been losing money for years, hit both by Britain’s economic downturn and stiff rivalry from vehicles such as the Vito, made by Mercedes, an arm of German car giant Daimler AG. Manganese Bronze launched its latest model, the TX4, in 2006, but a defect in the taxi’s steering system recently forced it into a recall — a damaging move which contributed to the company’s woes.