Two subsidiaries of Eco City Vehicles, One80 and KPM, have gone into administration.
Yesterday Mercedes-Benz informed KPM that it was terminating its stocking facilities and trading agreements with immediate effect.
Eco City Vehicles is the supplier of the licensed Mercedes Vito taxi and its subsidiary KPM operated its dealership in London.
Alan Bradstock of Accura Accountants Business Recovery Turnaround was appointed as administrator of KPM, and Robert Croxen and Colin Haig of KPMG were appointed as administrators of One80, the technology business behind the rear wheel steering system on the Mercedes Vito Taxi which Eco City Vehicles supplies.
The directors of ECV said in a statement they continue to evaluate the impact on the group of the appointment of administrators to its two principal subsidiaries.