Coventry business leaders hail investment in city’s automotive industry

BUSINESS leaders in Coventry have welcomed the second major boost to the city’s manufacturing capabilities in as many days.

They said the decision by London Taxi Company to invest £250m into a new factory at Ansty Park, coming the day after Jaguar Land Rover revealed it is to double the size of its Whitley facility underlined the city’s global reputation as centre of automotive manufacturing excellence.

The moves also significantly increase the amount of direct foreign investment being pumped into the area from firstly India (JLR) and now China (Geely).

Confirmation of the new factory also comes as the Government announces a £20m fund will be made available to local authorities around the UK to support the rollout of ultra-low emission taxi.

The money will be available to reduce the upfront cost of purpose-built taxis and to install charging infrastructure for taxi and private hire use.

A further £25m has been set aside specifically for the Greater London Area to help taxi drivers cover the cost of upgrading to a greener vehicle.

All taxis will also qualify for the government’s plug-in car grant, which currently offers up to £5,000 off the cost of an eligible low emission vehicle.

Speaking on LTC’s decision, Jonathan Browning, chairman of the Coventry and Warwickshire Local Enterprise Partnership (CWLEP), said: “It is a testimony to the skills and expertise of its workforce, as well as the other advantages our area brings, that London Taxi Company has the confidence to make such a major investment here.

“Its investment in research and development mirrors a similar strategy in Jaguar Land Rover’s announcement, and likewise offers great job and supply chain opportunities.”

He also hailed the support the businesses had received from the Government, which in the case of LTC saw it receive money from the Regional Growth Fund to aid its move to Ansty Park.

“The RGF was launched to give regional businesses help in realising their growth plans and create more jobs for local people which is exactly what this development will mean,” added Browning.

“These are exciting times for the automotive sector in Coventry and Warwickshire and these announcements will help attract more investment and further enhance our global reputation.”

His words were echoed by Louise Bennett, chief executive of Coventry and Warwickshire Chamber of Commerce.

She said: “Despite LTC having strong links with Coventry, Geely could have chosen another location within the UK to build this new state-of-the-art research, development and assembly facility.

“The skills and expertise within Coventry to support the new factory in developing the next generation London Black Cab will have been a major factor in choosing Ansty Park and the decision will further enhance the city’s reputation within advanced manufacturing.”

Peter Johansen, Vice President of UK Operations for LTC, said: ‘Coventry has been the home of the iconic London Black Cab for nearly 70 years so we are delighted that it will remain so for the next 70 as the London Taxi Company expands and goes from strength to strength.

“We are proud of the company’s regional heritage in an area that is steeped in automotive and manufacturing history. Geely’s investment in this new facility is testament to the dedication of all those who work at the London Taxi Company and this city’s reputation for producing world-class engineers. We intend to build vehicles in the vanguard of environmental technology which set new standards for comfort and performance.”

Li Shufu, founder and chairman of Zhejiang Geely Holding Group, said the investment would secure the future of LTC.

He said: “Almost two years after we acquired this company – in which we first took a stake in 2006 – it has become an important part of our global automotive strategy. (This) announcement symbolises the close business links between China and the UK, which is an attractive market for Chinese inward investment.

“The London Taxi expansion will demonstrate the benefits of Anglo-Chinese partnerships, showing how we can harness our resources, industrial know-how and technology to produce an environmentally-friendly next generation electric and ultra-low emission London Black Cab that China and the UK will be proud of, and which can be a world-beater in export markets.”

Steve Holland, Head of Asset Management at the Homes and Communities Agency – which sold the site of the factory to LTC – said: “We are delighted to welcome London Taxi Company to Ansty Park, following on the heels of Sainsbury’s and MTC, being testament to the Park’s ethos of research and development.”

Birmingham law firm DWF advised the HCA on the deal; the legal team was led by real estate partner Melanie Williams.

She said: “Creating successful communities is at the heart of what the HCA delivers and (this) deal demonstrates this. It brings key investment to Coventry whilst stimulating significant job opportunities for the region, and we are pleased to support the HCA on this high-profile transaction.”

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