Manganese Bronze saved from closure after firm is sold to former JV partner
COVENTRY-based black cab manufacturer Manganese Bronze has been saved from closure after administrators agreed a deal with the company’s former Chinese joint venture partner for the sale of the business.
The deal is thought to be worth more than £11m and will secure jobs at the London Taxi International site in the city as the agreement includes the retention of the Coventry assembly plant.
Administrator PwC said the agreement had been reached with new company Geely UK Ltd, a newly-created subsidiary of the Geely parent company, Zhejiang Geely Holding Group.
The deal also includes retention of the Mann & Overton dealership in London including its property, and all related dealership assets including those in Manchester and Edinburgh.
In addition the goodwill and brand names within the London Taxi Company and the shares that Manganese Bronze held in a Shanghai-based joint venture are also included in the sale.
The stock of new and unregistered taxis together with the entire fleet of used and demonstrator vehicles are also part of the deal with Geely UK.
Matthew Hammond, lead joint administrator and partner at PwC, said: “The last three months has seen an extensive search for a buyer, an accelerated successful programme to return the small number vehicles affected by last autumn’s recall quickly to cabbies in London and across the UK, and the readying of new vehicles for a return to the market.
“I am delighted to announce the completion of this deal which secures a future for the Coventry based manufacturer of the iconic Black Cab. It is great news for London black cab drivers and operators, for the employees across the dealerships and in Coventry, and for the suppliers who have supported the business. All current MBH and LTI employees will be transferred to the new company.
“The Midlands automotive industry is benefiting once again from new overseas investment and the London Taxi Company can now move forward with the added boost of Chinese investment in this UK business.”
Mr Hammond said the business had been forced to operate through the administration without manufacturing any new vehicles or selling vehicles into the markets.
In addition, it had had to retro-fit improvements to steering boxes on more than 400 vehicles after a fault last year prompted a product recall. All unsold vehicles have also had the improvements made.
“I am pleased that the business can now resume the manufacturing and sale of new and current vehicles and can re-establish itself fully with new investment. The TX4 assembly line in Coventry is ready to emerge from the administration to continue manufacturing this British icon,” he added.
“I would like to extend our thanks to all whom have played a part in this rescue of The London Taxi Company including the management team and staff, Unite as the representative of many of the employees, Transport for London and the London Taxi Drivers Association, the funders and particularly key suppliers.”
Geely holds a 19.9% shareholding in Manganese Bronze’s UK–based business after an initial investment in 2006. The remaining 80.1% of shares were not part of the administration process and are therefore not included as part of the deal announced today.
