12th Aug 2014 14:05
LONDON (Alliance News) - Eco City Vehicles PLC, the developer and supplier of the London-licensed Mercedes Vito taxi, Tuesday said the production of vehicles using the technology of its subsidiary One80 Ltd has been put on hold due to existing stocks of completed vehicles.
One80 owns the intellectual property rights to the rear-wheel steering technology used on the Mercedes Vito London licensed taxi and some of the taxi design rights.
"One80 has been notified by its licensee that further production is currently on hold owing to existing stock levels of completed vehicles," Eco City Vehicles said in a statement Tuesday.
The company said stock levels were 179 vehicles at the end of July, compared with 51 vehicles at the end of July last year.
Earlier this month, Eco City Vehicles reported a 33% decline in revenue for the six months to June to, as new Vito taxi sales declined, as did its share of the new London licensed taxi market.
The company blamed taxi booking app Uber and London Mayor Boris Johnson for making its market challenging in the first half of the year.
Eco City Vehicles said in its statement Tuesday that it expects to production to resume in October "subject to September sales performance".
Shares in the company were down 3.6% Tuesday afternoon, trading at 0.400 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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