By Geoff Foster for the Daily Mail <\/p>\n
Published: 15:58 EST, 19 September 2014 | Updated: 15:58 EST, 19 September 2014 <\/p>\n
Shares of the London-based developer and supplier of the 40,000 customised six-seater Mercedes-Benz Vito van were suspended at the companys own request, at a rock bottom 0.32p, after the firm admitted that its 76.6 per cent-owned subsidiary One80 intended to appoint an administrator.<\/p>\n
The news heightened fears about Ecos financial position as One80 owns the intellectual property rights to the rear-wheel steer technology and other design rights used on the Mercedes Vito taxi, which helps it comply with stringent people carrier rules laid down by the Public Carriage Office.<\/p>\n
Hazard warning lights have been flashing at Eco City for weeks, if not months. Its shares have reversed off a cliff and are down more than 80 per cent this year. They peaked at 8p in 2008. Only last month the board admitted to a funding crunch and said it had launched a strategic review that could call in to question the companys very survival.<\/p>\n
New Vito taxi sales have slumped and its share of the new London licensed taxi market has suffered as a result.<\/p>\n
Back in May 2013 its share of the market stood at 40 per cent-plus as it took business away from the iconic Black Cab manufacturer Manganese Bronze, which went into administration before being bought by Geely, the Chinese carmaker.<\/p>\n
Eco City has also been hit by the emergence of the smartphone cab-booking app, Uber. The spread of Uber across the world caused a wave of protests from London cabbies who complained that the US firm was undercutting them and allowing potentially unlicensed cab drivers to take trade.<\/p>\n
London mayor Boris Johnson also upset the apple cart by introducing rules this year that all new taxis in London should be capable of emitting zero emissions from 2018. Eco City continues to experience challenging trading conditions requiring it to seek additional funding. It is in negotiations with a potential backer that may or may not lead to additional funds, which will help it remain on the road. Former cabbie, founder and major 11.4 per cent shareholder Peter DaCosta, will be hoping that lighted For Hire signs on Vitos will not be lost for ever.<\/p>\n<\/p>\n
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MARKET REPORT: Eco City puts brakes on its shares<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Geoff Foster for the Daily Mail Published: 15:58 EST, 19 September 2014 | Updated: 15:58 EST, 19 September 2014 Shares of the London-based developer and supplier of the 40,000 customised six-seater Mercedes-Benz Vito van were suspended at the companys own request, at a rock bottom 0.32p, after the firm admitted that its 76.6 per cent-owned subsidiary One80 intended to appoint an administrator. The news heightened fears about Ecos financial position as One80 owns the intellectual property rights to the rear-wheel steer technology and other design rights used on the Mercedes Vito taxi, which helps it comply with stringent people carrier rules laid down by the Public Carriage Office. Hazard warning lights have been flashing at Eco City for weeks, if not months Continue reading