Shares in Eco City Vehicles were suspended yesterday as the firm teetered on the brink of collapse. The shares in the firm set up by ex cabbie Peter Dacosta has seen its share price fall 80% in 2014.
With no more Vitos being built due to a lack of sales led to a pile-up of stock, Eco City admitted One80 cannot survive because of a “lack of production revenues” as well as an impending legal case against its 76.6% subsidiary by one of its licence holders.
In addition the firm One80 that adapts the Mercedes Vito Vans to comply with the strict turning circle rules went into administration. So the future looks pretty bleak for the firm. Eco City looks set to follow its rival TX4-designer Manganese which went into administration in 2012. Since Manganese Bronze went into administration the Chinese have restarted production.
Another pressue on the traditional cab car has been the rise of Uber which has allowed other taxi drivers to pick people up off the street like a metered cab. Eco City is also facing competition from Metrocab which is making an electric vehicle.
If it does go into administration they will try and sell the business to effect a rescue or all the remaining assets and intellectual property will be sold to try and recoup monies for any creditors. Shareholders will receive little if anything as they are the last in the priority list to get paid.
For more information on administration see this page.