Geely Buys Builder of London Black Cabs for $17 million

GeelyGeelyChina, 1986 > present5 models
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will purchase Manganese Bronze Holding, makers of London Taxi CompanyLTIUnited Kingdom, 1982 > present3 models
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TX4LTI TX4United Kingdom, 2006 > present2 versions
black cabs, for £11.04 million (€12.8 million or $17.3 million). The company already owned 20% of the company. 

Under the purchase, Geely will continue to produce the cabs at Manganese Bronze's Coventry factory. Some of the cabs will be built in China but these will be for buyers outside of the UK. 

"We are determined to restore the fortunes of this totemic marque. We are a long-term and committed investor and we believe the illustrious past of the London black cab can be matched by a successful and healthy future," said chairman Li Shufu.

The London Taxi Company went into administration on October 30 when it found defects in its steering boxes. This forced the small company to stop production, freeze sales and recall 400 vehicles. The lack of cash flow forced bankruptcy. It forced the company to reduce its workforce from 274 people to 107. Since the bankruptcy, the company had to start a second recall of 4,400 cars after 12 engine fires in its TX4 cabs.

The company has been supplying London cabs for the last 50 years and sold more than 100,000 cars. It sells about 1,400 cars a year. 

"I am delighted that Geely has successfully secured the future of the London taxi company, ensuring the continuing manufacture of a world famous, fully accessible and instantly recognizable vehicle synonymous with London," London mayor Boris Johnson.

Source: Automotive News Europe