More than 100 jobs have been secured after the maker of the distinctive London taxi was bought out of administration in a deal worth £11m.
Coventry-based Manganese Bronze has been acquired by Geely, the Chinese carmaker that held a 20% stake in the firm before it collapsed in October. Manganese stalled after recalling 500 TX4 black cabs over a steering box fault amid mounting losses at the group.
Geely pledged to retain the group's 107 staff and manufacturing site in Coventry. However, 156 jobs were axed when Manganese called in administrators.
The deal was welcomed by the mayor of London, Boris Johnson. "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 recognisable vehicle synonymous with London," he said.
The group said it hoped to resume production as soon as possible.
Geely said it was "confident" it could create jobs and outlined plans to launch new taxi models with improved energy efficiency. It said it was considering expanding to the private hire market.
Li Shufu, chairman of Zhejiang Geely Holding Group, said the firm had "ambitious plans" for Manganese. "Despite its recent difficulties, we have long believed that the company and the black cab have huge potential," he added.
Manganese traces its roots to the 19th century when it made ship propellers. Its London Taxi Company division makes about 2,700 cabs a year and has produced more than 100,000 since its launch in 1948. Its newest model, the TX4, was launched in October 2006.
Geely's chief financial officer, Daniel Li, will become chairman of the Geely UK and Peter Johansen, formerly group finance director of Manganese Bronze, will be appointed executive vice president of the black cab operation as a result of the takeover.
While the holding company will be known as Geely UK, the new owner said it will retain the London Taxi International brand.
Unite union's regional officer, Peter Coulson, said: "Geely's decision to buy the London Taxi Company and to keep production in Coventry is a testament to the skills of the workforce that build the iconic black cab. Without the Coventry base the vehicle would have lost its unique character. Unite have been in constructive talks with Geely and we look forward to a strong working relationship."
The business secretary, Vince Cable, said: "It's only right that the iconic black cabs will be produced in the UK. I'm pleased that workers in the Coventry factory will keep their jobs, thanks to everyone who worked so hard to make this happen. I look forward to hearing more from Geely about its pledge to continue production in the West Midlands and opportunities for its supply chain in the UK."
No comments:
Post a Comment