For the first time in 60 years production of black cabs will cease in the UK and move to China. Look behind the headlines though and you’ll see that taxis will still be assembled in the UK, which shows the benefits of sourcing parts and components from the Far East and completing production locally.
London’s Evening Standard writes:
“Manufacture of London’s black cabs is to cease in this country for the first time since it began more than 60 years ago, with production shifting to China.
Bodies and chassis for the latest TX4 model will merely be assembled at manufacturer Manganese Bronze’s London Taxis International plant, in the latest blow for Britain’s car industry.
Manganese is also considering a deal to give its Chinese partner a majority stake in the company. It said it had no choice but to cease manufacturing after “the only viable UK supplier” of the primer coating (effectively the first undercoat sprayed on to the vehicle) said it would stop production from August.”
Chinese Premier Warns On Industrial Unemployment
Saturday, March 20th, 2010The warning signs are being flagged for China’s economy – particularly a rising industrial employment imbalance – even though the government has announced it is aiming for 11 per cent growth this year. In a televised speech, Premier Wen Jiabao said the Chinese economy was “facing difficulties.” Wen added that China must deal with “serious challenges in employment” particularly in coastal cities.
China’s labour supply still exceeds demand, and the urban employment situation “remains severe,” according to a senior Ministry of Human Resources and Social Security official quoted in state media. Some 150 million migrant workers headed to the cities in search of work last year, while the total of urban unemployed officially stands at 24 million. Adding a sense of urgency to China’s job creation programmes is the fact that a record total of 6.3 million university graduates will enter the workforce this year.
One solution, according to a state media opinion article is “for local factories and government to finally make decisions on industrial upgrading.” The article adds that while this will likely result in a short-term fall in revenues for factories and the government, it is “crucial for the sustainable development of factories and for addressing other social issues, such as the ongoing regional employment shortage.”
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