The UK taxi manufacturer Manganese Bronze was hit by the perfect storm of issues over the past four years, taxi sales slumped from 2008 onwards due to the recession and also suffered fromÂ accounting errors, continual losses, and product recalls all of which drove the company’s stock price down. Manganese Bronze and Geely set up a joint venture in Shanghai in 2006 to lower the costs of producing the vehicles, which were later shipped to the UK in CKD form and assembled locally for the UK market. Geely later bought 20% of the company and has now offered to buy the remaining 80% of MB.
It’s not entirely clear why Geely would be interested in continuing the relationship with MB, especially with continuing losses and product issues and also increasing competition from rival manufacturers in the taxi market. However, MB were planning to launch Geely’s Emgrand range in the UK in late 2012, the bankruptcy has likely slowed down the plan but Geely still seem keen on selling cars in the UK if they are planning to buy 100% of Manganese Bronze.