LONDON -- 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.
It had been in talks about a cash injection with Chinese company Geeley, which already owns a 20 percent stake.
Manganese said in a statement Monday that a "speedy resolution" of the product recall remained a top priority for the group, which will continue to operate throughout the administration process.
The firm employs 300 people and is based in Coventry in central England.