Geely loses money on MBH

• Source: Global Times
• [17:42 April 01 2010]
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TX4

Three years after Geely invested HK$420 million ($41.720 million) into UK's Manganese Bronze Holdings (MBH) since December 20, 2006, the Chinese automaker has lost HK$324 million, according to MBH's 2009 annual financial report.

Geely and MBH established a joint venture called Englon to produce and sell TX4 taxis, SC7 sedans and spare parts for luxury cars. But Geely only had 14 units of the TX4 with licenses last year.

Geely blamed the poor sales of the TX4 taxis to a taxi-monopoly by Chinese automakers.

The Chinese automaker has a 23 percent stake in MBH and has two seats on the board of directors. Meanwhile, Geely shares technologies with the British automaker.

From 2008 to 2009, MBH lost £21.5 million (223.2 million yuan), and the equity belonging to Geely has shrunken to HK$9.612 million.

Agencies and Shi Jierui contributed to this story