LEVC, maker of the London black cab, will cut 180 jobs at its factory in Coventry as part of a drive to reduce costs in the face of "increasingly difficult automotive market conditions".
Owned by Chinese company Geely, LEVC has been building the TX range-extender taxi at the Ansty factory since 2018 for global markets, with around 9000 produced for London alone - around 60% of the city's taxi fleet, the company says.
But the company says it will throttle back production in response to market headwinds and will trim its UK workforce accordingly. The firm previously cut 140 jobs at the site, in 2022, as part of an earlier cost-cutting initiative.
The principal factor it cites are the increased running costs for taxi operators, leading to a "persistent decline" in driver numbers - not just in London but across the UK.
LEVC also says moves by local authorities to relax taxi emissions standards and allow older taxis to continue operating have reduced demand for its low-emission electrified TX. In addition, it cites "shifts in licensing policy" and "ongoing issues such as cross-border hiring by private hire vehicles" as causes of the downturn.
LEVC said it "continues to actively engage with central and local governments to explore how the policy environment can support and grow the taxi trade".
Autocar has been told the TX remains in low-volume production following the job cuts, with the plant running far below its capacity to build 20,000 cars per year. The current size of the plant's workforce has not been confirmed.
It is also understood that while the TX-based VN5 van remains a part of the LEVC line-up, the plant has not produced any units in recent months.
The company says it has enough stock to cater to demand while production is reduced and "there will be no impact to customers, service or sales support".
It adds that the job cuts are part of an efficiency-boosting strategy "which will better position the brand to secure future investment in new technologies and products".
LEVC still plans to develop a second-generation TX and is working with regulators on the requirements.
It remains unclear if the restructuring impacts LEVC's plan to import the new China-built L380 eight-seat MPV to the UK - its first passenger car.
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