Zhejiang Geely Holding Group Co. is considering raising funds for the maker of London’s iconic black cabs, people familiar with the matter said, as the Chinese automaker looks to bolster its electric fleet.
Geely may seek about £1 billion ($1.2 billion) from private investors for London Electric Vehicle Company, the people said, asking not to be identified because the matter isn’t public. The Chinese owner may also explore other strategic options to bolster the production of electric taxis and boost LEVC’s growth, the people said.
Considerations are preliminary and details such as the fundraising amount and timing could change depending on investor response, the people said. A representative for Geely declined to comment.
Geely acquired the maker of London’s black cabs in 2013, after its parent entered administration, and rebranded it as LEVC in 2017. As part of the plan, Geely invested more than £500 million in a new global headquarters and the UK’s first dedicated EV manufacturing plant.
The traditional taxi operators that LEVC counts as customers have been facing multiple challenges ranging from the emergence of ride-hailing and sharing services to the plunge in demand during the pandemic. Global production of electric vehicles has also been dogged by shortages of chips and other car parts.
LEVC’s manufacturing facility in Coventry has the ability to produce as many as 20,000 vehicles a year, and the potential to boost that output another 80% with minor adjustments. It is still far from utilizing its capacity, having only produced its 10,000th car in March.
LEVC has been developing Space Oriented Architecture, an all-electric platform that will extend its product range beyond high-ceiling hackney carriages, for two-and-a -half years across R&D centers in China, Sweden, the UK and Germany. The company will utilize it for both people-movers and delivery vehicles. However, its immediate focus is to get the business in better shape, Alex Nan, its chief executive officer, has said.
Read more: London Black Cab Maker Needs More Than Just Taxis for Turnaround
--With assistance from Siddharth Philip and Linda Lew.
