Manganese Bronze Holdings, the comany that makes London taxis, suspended trading in its shares today and said its financial position is unclear.
This came as the company discovered a defect in its new TX4 model that led to a recall and halt in sales.
Manganese Bronze said it recalled about 400 TX4 London taxis after it found a defect in a steering box that was introduced in February.
Manganese Bronze shares have lost two-thirds of their value since the beginning of this year.
"The suspension of sales will have a very material and detrimental impact on the group's cash flows and the board is working to establish the options available to the business given the impact on working capital," the company said in a statement.
The company is 20% owned by China's Geely Automobiles. It has been struggling with falling sales in the United Kingdom, and warned in August that trading in the first seven months of 2012 had been difficult.
