The maker of the famous London taxi, Manganese Bronze, has gone into administration.
Manganese has called in the administrators after failing to secure a £15m investment from its Chinese shareholder Geely.
The Coventry-based company, which employs 300 people, stopped sales of its new TX4 model earlier this month after a problem with the car's steering box was discovered.
400 vehicles have been recalled, although Manganese has claimed that the defect has not put anyone in danger.
The recall and suspension of sales has made a huge financial impact on the company, which reportedly lost £3.1m in the first half of 2012.
In a press statement, Manganese said: "The board remains hopeful that the fundamental strengths of the company, the TX4 model and its global reputation will provide the platform for a successful business in the future."
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