ON YER BIKE - Boris Johnson wants to force out diesels with daily charges within a ultra low or zero emission zone in London.
Not really a policy designed to make Taxi Drivers rush out and buy a new Vehicle. Not one vehicle currently on sale would be exempt from the new tax, being implemented on the 1st January 2020, just over 5 years away.
Eco City Vehicles (LON:ECV) have seen their shares slumped after a warning revenues were down 33% in the first six months of 2014.
The firm, which supplies London’s licensed reduced emissions Mercedes Vito taxis, blamed the controversial Uber app and Mayor Boris Johnson’s environmental proposals. It said the trading environment remained challenging due to the uncertainties caused by those two factors.
Johnson’s proposals include daily charges on diesel vehicles within a zero or ‘ultra low’ emissions zone in central London.
It could become the latest squeeze on cabbies who claim their businesses are being eroded by TfL's unfair bias towards the operation of the Uber app.
Eco City has also warned investors that more funding would be required during 2014, and it is reviewing strategic option - excluding the sale of the company.
On AIM, the share was down 36% at 0.42p today.
With uncertainty surrounding the implementation of the diesel vehicle surcharge, looming in 2020, would anyone in their right mind, really consider spending the best part of 50k, on a new Taxi that will almost certainly be replaced by a vehicle with a completely different engine in the very near future?
Why hasn't the Vito Taxi been future proofed, by the addition of the Bluetec system which Mercedes have been fitting to S type limos for some years?
What is it they are waiting for?