London black cab owner Geely explores raising fresh funds

Zhejiang Geely Holding Group 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 pounds ($1.2 billion) from private investors for London Electric Vehicle Company, the people said, asking not to be identified because the matter is not 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 fund-raising 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 pounds in a new global headquarters and the UK’s first dedicated EV manufacturing plant, but the unit has not been profitable yet.

The traditional taxi operators that LEVC counts as customers have been facing multiple challenges ranging from the emergence of ride-hailing and ride-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 percent with minor adjustments. It is still far from utilizing its capacity, having only produced its 10,000th car in March. The company cut 140 jobs in the U.K. last year.

LEVC has been developing the 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 U.K. and Germany.

The company will utilize the underpinnings for both people-movers and delivery vehicles. However, its immediate focus is to get the business in better shape, LEVC CEO Alex Nan has said.