GEELY, the Chinese carmaker, is weighing up a rescue bailout for troubled Manganese Bronze, the manufacturer of the iconic British black taxi.
Executives from the Chinese firm, which has a 20 per cent stake in the Coventry-based company, are understood to be flying to Britain today to discuss a possible cash injection.
Manganese Bronze suspended trading in its shares on Friday after having to recall 400 of its new TX4 cab model because of a steering system fault. The loss-making vehicle manufacturer has halted sales until the problem is fixed.
With no income stream for the foreseeable future, a possible cash injection from the Chinese is thought to be top of the agenda in the talks starting today that may be extended this week.
John Russell, Manganese’s chief executive, admitted at the weekend that “we are not yet at the point where we have crystallised a way forward with Geely”.
However, he played down suggestions the British company is heading for administration.
Neither Geely or Manganese was available for comment yesterday.