Zhejiang Geely Holding Group Co. plans to invest £100 million (EUR115.8 million) in Manganese Bronze Holdings in the next five years as part of plans to make the London black cab maker profitable. The investment plan, announced by Zhejiang Geely chairman Li Shufu, entails Manganese Bronze exporting its black cabs to other countries, according to company spokesman Victor Yang.
The Chinese carmaker announced on Feb. 1, 2013 that it agreed to acquire Manganese Bronze for £11.04 million on a debt-free basis. Manganese Bronze entered administration in 2012. The acquisition of Manganese Bronze will help Zhejiang Geely expedite its expansion after its purchase of Volvo Car Corp. in Sweden.
Yang told Bloomberg in a phone interview that they now target Manganese Bronze to become profitable in a year instead of three years, as the black cab maker targets more buyers outside the United Kingdom.
Manganese Bronze sold 200 cabs each to Australia and Saudi Arabia, Yang said. Manganese Bronze will also sell its cabs in China. Around 500 Manganese Bronze cabs are plying the streets of Chinese cities like Beijing, Guangzhou and Ningbo. Manganese Bronze has said that it will still produce its cabs at its Coventry site in England.