Black cab factory opens after £300m investment

London Taxi Company

A new factory set to produce electric and ultra-low emission versions of the famous London black taxi is being officially opened in Coventry today following a £300m investment.

London Taxi Company owner, Chinese automotive company Geely, has made the investment in the new plant at Ansty Park to capitalise on what is expected to be high demand for the new TX5 cab.

The 85,000 sq metre site, which create up to 1,000 new jobs, will also house all of the company’s research, development and assembly operations.

So long a feature on the streets of London, LTC is now looking at other European capitals as it searches for potential new markets for the new cab.

Even though the new vehicle won’t be rolling off production lines until the third quarter, the company has already held pre-launch events in Amsterdam, Berlin, Barcelona, Paris and Oslo as it looks to raise the profile of the new vehicle.

With many cities around the world now demanding lower emissions from the vehicles using their streets, the company has already received significant interest in the new vehicle.

The new taxi’s hybrid powertrain uses a small engine to top up its battery, but it can also run entirely on its battery, with zero emissions. LTC has said it is targeting a 70-mile range for electric-only propulsion.

The new factory will eventually have the capacity to assemble up to 36,000 vehicles a year. This is a ten-fold increase on capacity at the company’s existing site in Holyhead Road, Coventry, which has been home to production of the black cab for almost 70 years.

However, initial production will be a little more modest, with 5,000 of the new vehicles expected to roll off production lines by 2019.

Geely’s commitment to the development represents one of the largest greenfield investments  in the UK by a Chinese company, although the development has also been backed by funding from the Regional Growth Fund and other UK and local government support.

The new vehicle will be developed using significantly increased UK content, bringing economic benefits through the supply chain.

Trade union Unite said the opening of the factory was one of the great comeback stories in UK manufacturing history.

In 2013, the then London Taxi International was on the brink of closure following the collapse of then parent, Manganese Bronze.

After its Chinese rescue and rebranding, investment has seen the workforce rise from 150 to the current 450. This is expected to rise to 1,000 by 2020.

Unite regional officer Peter Coulson said: “This a fantastic story of a company that was on its knees in 2013; now thanks to the commitment of Geely’s top management and accompanying large-scale investment the iconic London taxi is set for its continued renaissance.

“Tribute should also be paid to the dedicated workforce who have worked hard and diligently to contribute to the current success.

“This is fantastic news in terms of highly skilled jobs for our members and the future creation of employment opportunities. It will be a wonderful boost to the West Midlands economy.”

Production of the current TX4 cab will be run-down over the next 12 months, depending on demand.

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