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Coventry taxi maker LTI sold to Chinese firm Geely for £11.4m | Coventry taxi maker LTI sold to Chinese firm Geely for £11.4m |
(about 1 hour later) | |
The black taxi manufacturer LTI has been sold for £11.4m to the Chinese car manufacturer Geely. | The black taxi manufacturer LTI has been sold for £11.4m to the Chinese car manufacturer Geely. |
The company has acquired the "business and the principal assets" of Manganese Bronze Holdings (MBH), the manufacturer of the London cabs. | |
LTI in Coventry went into administration in October with 99 out of its 176 workers losing their jobs. | LTI in Coventry went into administration in October with 99 out of its 176 workers losing their jobs. |
The deal, which it said will safeguard production in the UK, was agreed with administrators Pricewaterhouse Coopers. | The deal, which it said will safeguard production in the UK, was agreed with administrators Pricewaterhouse Coopers. |
'Healthy future' | |
Geely said that its priority will be to re-establish the manufacture, sale and servicing of new and current vehicles "on broadly the same basis" as before the administration, including the continued assembly of the TX4 at the Coventry plant and retaining its 107 staff. | |
Li Shufu, chairman of Zhejiang Geely Holding Group, said: "We are delighted to have completed the acquisition of Manganese Bronze Holdings' business and we are determined to restore the fortunes of this totemic brand which is known, recognised and admired all around the world. | |
"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. | "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. |
"We have ambitious plans for the business and, despite it being clear that there are a number of challenges to overcome, we are committed to working with all stakeholders to build a solid future for the black cab business that will enable it to return to profitability in the short term and grow substantially in the longer term." | "We have ambitious plans for the business and, despite it being clear that there are a number of challenges to overcome, we are committed to working with all stakeholders to build a solid future for the black cab business that will enable it to return to profitability in the short term and grow substantially in the longer term." |
David Bailey, a professor of international business strategy and economics at Coventry University Business School, said Geely "is a big player" that is "growing quickly" and that there is a chance there for them to put resources into developing new models. | |
He said: "I think in the short term, Manganese Bronze could always be saved, longer term the big issue is about developing new taxis that can compete in the market. Geely potentially offers them a lifeline to do that." | |
Involve the workforce | |
He also hopes that some of the workers who were made redundant could be taken back on to be part of the skilled workers assembly line. | |
Geely made an initial investment in MBH in 2006, in return for a 19.97% equity stake, and established a joint manufacturing facility in China. | Geely made an initial investment in MBH in 2006, in return for a 19.97% equity stake, and established a joint manufacturing facility in China. |
It was also the biggest single creditor when the company went into administration. | It was also the biggest single creditor when the company went into administration. |
The acquisition includes plant, equipment and property, intellectual property rights, trademarks and the "goodwill of the business." | |
It also includes MBH's 48% stake in the joint venture manufacturing company in Shanghai set up by Geely and MBH in 2009 and MBH's stock of unsold vehicles. | It also includes MBH's 48% stake in the joint venture manufacturing company in Shanghai set up by Geely and MBH in 2009 and MBH's stock of unsold vehicles. |
Geely has said that it will involve the current workforce as much as possible. | Geely has said that it will involve the current workforce as much as possible. |
Roger Maddison, the union Unite's national officer, is hopeful for the future and said that Geely has invested "decent money." | |
He said: "They have plans for the future, let's hope its another Jaguar Land Rover with plenty of investment, we can have a real success story here in Coventry." |