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Eco City Financing, Trading Arrangements With Mercedes-Benz Terminated

Tue, 23rd Sep 2014 17:38

LONDON (Alliance News) - Eco City Vehicles PLC said Tuesday that is evaluating its options after Mercedes-Benz informed it that it has opted to terminate its stocking facilities and trading agreements with Eco City's subsidiary KPM Taxis PLC with immediate effect.

Eco City is a supplier of the London licensed Mercedes Vito taxi. Its shares were suspended last Friday, after it announced that its One80 subsidiary is set to be placed into administration.

One80 owns the intellectual property rights to the rear-wheel steer technology and other design rights used on the Mercedes Vito taxi, however, production of the Mercedes Vito has been on hold due to existing levels of stock of completed vehicles.

Eco City said last Friday that it was facing continued challenging trading conditions, requiring it to seek new funding, and said it was in talks with a potential funder.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2014 Alliance News Limited. All Rights Reserved.

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