Chinese car firm Geely could be coming to the UK after signing an innovative deal with Manganese Bronze – manufacturers of the LTI London taxi.
The agreement will potentially open up the UK market for distribution of Geely cars, with the LTI network also providing aftersales support and a spare parts supply chain.
The two companies are now looking into the potential of the deal, and hope to have something in place before the agreement lapses this time next year. It is expected the launch brand will be called Emgrand cars.
Chinese brands are seen by firms already long established in the UK as the next big challenge, after Japanese and, more recently, South Korean brands made inroads by launching new car makes.
The Chinese market is already the largest in the world and Chinese car firms are far bigger than many realise. Up to now, they have mainly served their home market, but now the big players are looking to establish themselves abroad.
At first, they are likely to be sold as value cars, offering high specifications and lots of space for low prices.
The UK deal between top-three Chinese brand Geely (which owns Volvo) and Manganese Bronze (of which Geely also owns 19.9%) is one of the first examples of this happening.
The clever deal, if carried through, will take advantage of LTI’s already-established dealer and service network. It currently has seven dealers in major UK cities such as London, Manchester, Edinburgh, Glasgow, Liverpool and Coventry. There are more than 50 service and maintenance outlets too.
Jim Russell, CEO of Manganese Bronze Holdings plc, said: ‘The signing of this agreement is a further example of the growing relationship between MBH and Geely.
‘We look forward to successfully establishing and agreeing the business plan for the launch of Geely vehicles into the UK and for the implementation of that plan.’
The Emgrand car range already on sale includes a model called the EC718. This is similar in size to a Skoda Octavia and fitted with a 139hp 1.8-litre petrol engine. If launched in the UK, it would compete against models such as the Chevrolet Cruze and Mitsubishi Lancer.
