taxi.jpgWe
read a lot about the problems of sourcing in China. But for Manganese
Bronze, maker of the famous London black cab, China could prove a
salvation as far as its sourcing strategy is concerned.

In its latest financial results,
the UK carmaker reveals that it experienced a “significant operational
difficulty” during the year due to some of its UK-based suppliers going
out of business. To minimise the risk of future disruption to its
supply chain, the company is thus pressing ahead with its plans to
source more components from Chinese suppliers.

As disclosed in this earlier EngagingChina story, the company is shifting manufacturing of the black cab from the UK to China through a JV with Geely.

As
well as allowing it to sell cabs in the fast-growing Chinese market,
the move will enable Manganese Bronze to source more of the components
from low-cost Chinese suppliers. And just in the nick of time, to judge
from the financial problems facing some UK automotive suppliers, which
have been hard-hit by the bankruptcy of MG Rover.

While the shift
to Chinese suppliers was originally driven by cost considerations, it
looks like the move will also enable it to secure a more stable
supplier base.

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