StockMarketWire.com – Shares in taxi manufacturer Manganese Bronze Holdings [LON:MNGS] were suspended after the group announced the recall of approximately 400 of its TX4 London taxis and suspension of sales of new TX4 models as a result of the discovery of a defect in the steering box.
The company says steering box is a new design from a new supplier that was introduced in production at the Group’s Coventry factory in late February 2012.
Adding that discussions are being held with Geely to put in place a robust technical solution for the steering box faults.
The suspension of sales is expected have a very material and detrimental impact on the group’s cash flows and the board explains it working to establish the options available to the business given the impact on working capital. Until such time that a technical solution is developed to rectify the fault, the financial position of the group remains unclear and trading in the company’s shares will remain suspended.