Manganese Bronze, the black-taxi maker, swung into the red during the first six months of the year as the start of production for the Chinese market failed to mask the impact of a downturn in UK sales.

The Coventry-based company absorbed £2.2m ($3.6m) to help fund further discount offers on its vehicles during the six months to June 30 and is planning an additional 28-day lay-off of staff on top of 21 days of industrial shutdown already planned during the second half to cut costs.