London Taxi Gets a Chinese Makeover

HONG KONG — Chinese automaker Geely Group unveiled a flashy gold version of London’s black taxi cabs at the Shanghai Auto Show over the weekend, and it hopes that the iconic symbol of the British capital will strike gold when it hits the road in China and the United States.

Geely inked a joint venture agreement with Britain's Manganese Bronze in October to produce about 20,000 London cabs a year from 2008 onward.

The alliance allows Manganese Bronze, which makes about 3,000 vehicles a year in the U.K., to expand sales overseas from a cheaper production base, and it has helped Geely Group upgrade its technology and product quality.

"Many markets we could sell into internationally would like our black cabs, but they are too expensive. We've been looking for a Chinese partner for many years," said Manganese Bronze CEO John Russell, according to the Associated Press.

The cars will cost about 250,000 yuan ($32,000), according to Geely Group, a third cheaper than British-made models.

Manganese Bronze holds 48 percent of the joint venture, which is valued at about $100 million, and as part of the deal, Geely received a 23 percent ownership stake in the British company, which has manufactured black cabs since 1948.

The retro-style London cabs are expected to sell well in China, which is the main target of Manganese Bronze. Producing the cars in Shanghai allows the British company to avoid China’s high import duties.

The London cabs run on diesel, but to meet Chinese emissions standards, the new version has been modified to run on gasoline. This will allow the London cabs to be sold in American states where sales of diesel passenger vehicles are barred, including New York.

While they are likely to find a market with American Anglophiles, they could also find a home in U.S. taxi fleets. America has largely been without a similar, purpose-built taxi since Checker Motors ceased production in the early 1980s. Like the London cabs, Checkers featured roomy interiors with enough space for several passengers and their luggage.

China produced 7.3 million cars last year, surpassing Germany as the world's third-largest auto producer.

Geely, which consists of the Hong Kong-listed Zhejiang Geely Automobile and Shanghai Maple Guorun, sold a combined 175,635 cars in 2006, up 32 percent from the year before.

Yet Geely has been facing tough competition from Chery Automobile, the top Chinese automaker, as well as global auto giants such as Toyota and General Motors, whose joint venture are dominating Chinese market.

Most of the multinational auto companies participating in the Shanghai Auto Show have plans to expand in China.

General Motors CEO Rick Wagoner said his company would double its production capacity in China by 2010.

Ford China Chairman Cheng Meiwei said that China would become the most important parts-sourcing center globally for Ford, according to Xinhua News.

Toyota, Honda and Volkswagen are moving more research and development projects into China.

Photo credit: MARK RALSTON/AFP/Getty Images