Friday, September 19, 2014

Vito Taxi Suppliers Eco City, Sees Shares Suspended: Company On Verge Of Collapse.

Eco City Vehicles, the firm behind the Mercedes Vito London black cab, today saw its shares suspended as it stood on the verge of collapse just two years after rival TX4-designer Manganese Bronze did the same.

The company, founded by ex-cabbie Peter DaCosta, broke Manganese’s monopoly by converting Mercedes people carriers into cabs approved by the Public Carriage Office.

But now its future looks bleak after Eco City admitted its subsidiary One80, which owns the intellectual property to the crucial steering technology that adapts the Vitos to comply with London taxis’ strict turning circle rules, looks set to collapse into administration.

With no more Vitos at present being built after a lack of sales led to a pile-up of stock, Eco City admitted One80 cannot survive because of a “lack of production revenues” as well as an impending legal case against its 76.6% subsidiary by one of its licence holders.

“The group continues to experience challenging trading conditions requiring Eco City Vehicles to seek additional funding,” the firm said.

It added it was in talks with a potential backer but warned those negotiations “may or may not lead to additional funds”.

That uncertainty saw Eco City suspend its shares — which have plummeted by more than 80% in 2014 — at 0.3p “pending further evaluation of its position and future structure”.

Eco City only has one person left on the firm’s executive team, finance director Jonathan Moritz, who did not return telephone calls today.

In August, Eco City blamed San Francisco cab-booking app, Uber, for slaying London’s iconic taxis trade. It said that its collapse in revenues — which were down by a third in the six months of July — were “mainly due to the emergence of Uber”. But the Vito is also facing challenges from new taxis from Metrocab, which is making an electric cab, and Nissan.

Eco City’s struggles follow Maganese Bronze’s collapse in 2012, just two months after the Spice Girls sang and danced on top of five of its cabs in the closing ceremony of the Olympic Games. The firm was later bought by China’s Geely, for £11 million, and restarted production.

    Source: Evening Standard Business: Lucy Tobin


This From The Rugulator:


19 September 2014

Eco City Vehicles PLC

 

("ECV" or "the Group")

 

Share Suspension and Trading Update

 

Eco City Vehicles PLC ("ECV"), the sole distributor of the licensed Mercedes Vito taxi, provides the following update regarding One80 Limited ("One80").

 

One80 is the Group's 76.6% subsidiary, which owns the intellectual property rights to the rear wheel steer technology and other design rights used on the Mercedes Vito taxi.

 

In September 2012 ECV acquired the benefit of a short term loan made to One80 by Cabvision Network Limited. This loan has now been repaid and the security over One80 assets has been satisfied. 

 

As previously announced on 12 August production of Mercedes Vito taxis remains on hold owing to existing stock levels of completed vehicles.

 

With a lack of production revenues and, also previously announced the impending legal case against One80 by the non-exclusive licence holder the directors of One80 have notified its shareholders of its intention to appoint an administrator for One80.

 

As previously announced the Group continues to experience challenging trading conditions requiring ECV to seek additional funding. ECV is in negotiation with a potential funder that may or may not lead to additional funds.

 

With the potential administration of One80 and the resulting contractual frustrations encountered with third parties in executing disposals under the Group's strategic review, together with the continuing challenging trading conditions there is uncertainty as to the Group's financial position and prospects, as a consequence, ECV has requested a suspension of its shares pending further evaluation of its position and future structure.

 

 

Enquiries:

Eco City Vehicles plc


John Swingewood, Chairman

Jonathan Moritz, Finance Director

+44 20 7377 2182

Numis Securities Limited


Stuart Skinner (Nominated Adviser)

+44 20 7260 1000

David Poutney (Corporate Broker)


Luther Pendragon


Neil Thapar, Sam MacAuslan

+44 20 7618 9100

 

16 comments:

Anonymous said...

No chance of any warranty being honoured then.
Mercedes wont take it on ; its not their taxi !
Good luck to all those Vito owners who now have to deal with the crap themselves and pay through the nose for the privilege .
It would not be surprising if TFL withdraw their approval because they are not fit for purpose and no longer have the protection of corrupt politicians like Yeo. He has got your money and now he's off

Anonymous said...

Don't worry there is a massive article in the latest edition of The Badge... claiming: for a small price the Vito Owners Club will come to the rescue of forlorn owners of the Mercedes Vito - They whole heartedly believe this Vehicle will be around for a long time - totally disregarding the fact that it fails to meet the CoF on a daily basis, they are also in denial of the fact nobody is interested in paying the ridiculous price tag KPM have been asking for it!

What's the difference between a Dingbat and a Lemming.

Answer... not very much!

Anonymous said...

Note they are blaming everyone except the pony RWS system they fitted.
Shame on all the owners who must be concerned.,
Tfl surely have some responsibility as the RWS system was approved by them?
Another fiasco.

Anonymous said...

I have a 2 year old vito that has rw steer problems, does this mean I will now have to pay for repairs myself. Does anyone know?????

Anonymous said...

You can see whats coming can't you, scrapping the turning circle requirement is on the cards iis no doubt on the cards, meaning mini cabs and taxi's will become one,.

Will soon be anything goes folks, the public wont be able to spot the difference. This was planned all along i suspect.

Ex Papa Juliet call sign said...
This comment has been removed by a blog administrator.
Anonymous said...

The Vito Taxi Owners Club tweeted yesterday

VitoTaxiClub @mfcanty · 15h
For those asking about 180. They suspended trading, and CityVehicles have temporarily suspended because of this news. No need for panic.

Eco City Vehicles have no money and their main asset One80 which owned the IP has gone into administration.
Eco City Vehicles are selling no vehicles so there is little or no chance of an investor stepping in , especially with the launch of the Nissan in a couple of months at £10k less to buy and nearly twice the fuel economy.
The Vito will not meet the emissions standards in a couple of years as it has a diesel engine so its unlikely that Mercedes will step in to take over.
The Nissan is a Euro 6 petrol engine which will meet future emissions standards
Eco City Vehicles are already not servicing the vehicles they have sold and there will be no warranty at all when they go bust.
They have massive ongoing technical problems and the rear wheel steering is dangerous. Its only a matter of time before there is an accident and if that happens the Vito could be taken off the road just as the TX4 was taken off the road when it had a steering problem.
LTI stepped in to resolve that problem but if there is no Eco City Vehicles to step in the vehicles could remain useless.
Manchester Council changed the requirement for a turning circle because of the problems with the Vito rear wheel steering but it is unlikely TFL will do the same

No need to panic? The man is dnagerously deluded

Anonymous said...

Anon 10.13, good solid assessment of the Eco City Vehicle situation, which is more than I can say about the Warmington on Sea brigade (Vito Taxi Club), the best advice they can give is "Don't Panic, Don't Panic".
I seriously wonder what's going to happen when their 300+ members start a run on the clubs benefits, which include:

Trade representation

Maintenance and technical advice

Trade dispute assistance

Classified adds section


Regular Vito information

updates Warranty claim assistance

Vito parts club

Servicing and repairs advice

The Vito Taxi Club are about to find out they are 20, 000 fathoms out of their depth!

Anonymous said...

Let the decommissioning begin, the sooner the better!
Thank f#*k I won't be wasting any more of my life sitting in KPM's waiting room reading the inane ramblings in the chip wrappers that masquerade as trade press publications.

Anonymous said...

Glad to see them gone, it's a shame for the owners.

Personally I think 6 hander cabs take work from the trade.

Anonymous said...

Iv had 18 months of hell dealing withkpm.. although I lose the remainder of my so called global warrenty I cannot help but smile that kpm and there discusting rip off tactics have now folded.. these scumbags never deserved to sell a single cab. The thing that discusts me more than kpm are the ltda who know about the rws problems yet still keep quite about it through fear of losing some advertising revenue for there newspaper

Anonymous said...

Let's see how mike canty gets out of the hole he has dug for himself. The Vito owners club has been nothing but a self serving operation to feed mikes ego and his pocket.
Good luck canty, your going to need it.

Mike Canty said...

We met MB today at a pre-arranged meeting to see the High quality rear steer components fitted to a test cab.
Four of us drove the cab, including Grant Davies who came up to see it working, and all were all impressed with what we have seen. They have completely redesigned the system and even tested actuators in a meter of water. We now have a system to match Mercedes standards.

Our meeting was extended to cover the events of the past week. MB gave us an announcement vitotaxi owners which is on the website. They pledged their continued support for the vito taxi and owners. They will now take over sales of the vehicles through chosen dealerships, to be announced.
The many issues will be dealt with in time.
News updates on www.vitotaxiclub.org

We are not about egos Mark sorry I mean "anonymous"
We want the best deal for our owner members.
You carry on with the doom and gloom Mr Thomas.

VitoTaxiClub said...

We have lost a main dealership which is not good news, whatever people think.
But as we said " don't panic "
MB will continue selling the Vito taxi through their own selected dealerships soon.
MB have announced today that they will support the owners and warranty/service work will be carried out at their Commercial dealerships.
Today we saw the professionally upgraded rear steer system working as it should do.
Euro 4. Motor trade insurances should cover contingencies such as this. We are checking.

As we have said before since Boris's announcement
Lease don't buy!

www.vitotaxiclub.org

VitoTaxiClub said...

We asked MB for extended warranty on Agility deal cabs until new cab sales resume.
They agreed, see their response on
www.vitotaxiclub.org news.

alan said...

I had to pay ten thousand pound to get rid of my Vito cos I had nothing but grief with it got no help from kpm or mercs I'm now mortgaged up to the hilt because of them