Allied Vehicles, the Glasgow-based taxi manufacturer, is to lodge a complaint with competition watchdogs over licensing authority Transport for London's continuing refusal to sanction its Peugeot E7 cabs for use on the capital's roads.
The Possilpark firm's lawyers are preparing a submission to the Competition Commission, owner Gerry Facenna told The Herald.
Facenna said Allied had threatened to take the authority to judicial review after its initial application to sanction the Peugeot E7 was rejected on technical grounds.
A TfL spokesman said one problem with the seven-seater, wheelchair-friendly Peugeot E7 is that it cannot meet the authority's turning circle requirements.
The authority agreed to review its requirements a year ago but has refused to budge on its ruling.
Facenna wants to challenge the market dominance in London of Manganese Bronze, owner of London Taxis International and maker of the world-famous Hackney. He was encouraged by Edinburgh City Council's decision in the spring to fall in line with every other Scottish local authority and sanction use of the E7.
Allied is to establish a presence in Edinburgh for the first time shortly by opening a showroom in the Broomhouse district of the city, Facenna said.
Of the main UK cities, only Liverpool, Manchester and London refuse to accept the E7, after Leicester and Northampton recently gave it the rubber stamp.
Allied, which employs more than 300 people, was established as a motor dealer 12 years ago by ex-mechanic Facenna and his brother, Michael. Its diversification into taxi production saw the company bring large-scale vehicle production to Scotland for the first time since the Talbot factory at Linwood, Renfrewshire, closed in 1981. The company produces the E7 from a Peugeot shell and adapts a range of vehicles, including minibuses, for wheelchair use.
In the year to January 31, pre-tax profits at Allied halved to £323,223 on flat sales of £41m. Facenna attributed the fall partly to investment in property and the costs of developing a new production line for left-hand-drive vehicles.
Allied recently exhibited the E7 in Cologne and is greatly encouraged by overseas interest, he said.
Last month, Allied announced the creation of 60 front-line assembly jobs in the city with the introduction of a night shift to keep up with its growing order book. The company's expansion in Glasgow came as London Taxis International announced its intention to outsource production of its traditional TX taxi to China.

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