Geely to buy British taxi maker Manganese Bronze

• Source: CCTV.com
• [17:08 March 28 2010]
• Comments

British taxi manufacturer, Manganese Bronze, says it has begun negotiations with Chinese automaker Geely. Under the proposed agreement, Geely would raise its shares of Manganese to 51 percent from the current 19.9 percent.

Manganese Bronze is a leading manufacturer of the symbolic London Taxis. However, its factory located in the city of Coventry lags behind in terms of modernization as the main procedures are still done by hand. Insiders say Geely aims to take advantage of the taxi maker's quality control system and sales network.

Wei Gang, Vice President of Shanghai LTI Automobile Components Co. Ltd, said, "Manganese Bronze will give all the intellectual property rights of the London Taxi to Geely and our joint venture without attaching any conditions. This differs from other ventures, which also means Geely can cooperate with the English company under its global strategies."

Manganese Bronze is also a listed company in the London Stock Market, which makes financing for Geely more convenient.

Enjoying fast development, China's automakers have begun to venture into merger and acquisition deals abroad. However, experts have warned that they should focus on management skills as a way to improve the company.