Black cab factory hailed as vital for Coventry economy
The opening by London Taxi Company of its new £300m new factory in Coventry has been hailed as good news for the city and a move that could help insulate the area from the worst of any Brexit fallout.
Nigel Driffield, a Professor of International Business at Warwick Business School, said the advantages of foreign direct investment (FDI) were there for all to see.
Prof Driffield, who researches FDI and who has advised several regional development bodies, said: “The opening of the London Taxi Company’s new Ansty Park plant is unambiguously good news for Coventry and the region, and highlights many of the benefits of inward investment.
“Much like Jaguar Land Rover, the company was essentially sound with a good product, but was starved of cash for further investment. The foreign investors – who are typically themselves cash rich from successful investments in the home country – are therefore able to take advantage of opportunities others cannot.
“On the face of it, this is one foreign investment that appears relatively robust to the threats from Brexit. The challenge for policymakers both locally and nationally is to ensure that this continues to be the case, supporting local supply chains, both with skills and access to innovation and finance, and aligning the much-vaunted industrial strategy, to the needs of these businesses.”
He said this typically included support for battery technology, and other sectors that feed into these supply chains, to ensure the region received the greatest possible benefit.
The factory, the result of investment by LTC’s Chinese parent, Geely, is the first ground-up new car plant in the Midlands for more than a decade.
It will produce electric and ultra low-emission versions of the new TX5 black cab, which the company hopes to sell all over the world as major cities look to reduce exhaust emissions.
Thousands will eventually roll off the production lines, produced by the 1,000 workers likely to find employment at the plant.
Attending the opening of the plant were Geely chairman Li Shufu and Business Secretary Greg Clark.
LTC chairman Carl-Peter Forster said: “We are extremely proud of what we have achieved today.”
The company’s CEO, Chris Gubbey said the opening marked the rebirth of the London Taxi Company.
