The West Midlands maker of the world-famous black taxi cab is to move body panel and chassis manufacture to China, it was announced today.

The move will cost 60 jobs in Coventry. Manganese Bronze said the parts for its TX4 vehicles will be made in Shanghai after a key UK supplier decided to cease its specialist painting process later this year.

Manganese’s Coventry-based London Taxis International arm has man­ufactured the cabs since 1948, but it will now move to an assembly role.

Chief executive John Russell said: “Our UK consultation process is almost complete, which will lead to a smaller, lower-cost UK operation with a much greater level of supply from China.”

The firm said its UK sales continued to suffer amid “current economic conditions”, with the London market hardest hit.“UK sales performance continues to be challenging as drivers’ confidence to commit themselves to the purchase of a new taxi remains weak,” it said.

The number of cabs sold in the second half of the year was below the first half despite the impact of the Government’s scrappage scheme.

The company, which has 300 staff, imports the engines for its cabs from Italy and incurred extra costs last year due to the strength of the euro.