London Taxi Firm Secures Funds for Hybrid Program

China's Geely Automobile Holdings Ltd. says it has raised $400 million through a new bond issue for its London Taxi Co. (LTC) unit to produce a plug-in hybrid cab and develop additional “green” models.

The company plans to launch the new model, called the TX5, by the end of next year in London and a year later in other international markets. LTC, which unveiled the vehicle’s design last October, will start work on an updated TX5 prototype next month.

The vehicle is expected to ride on a new modular platform and feature lightweight composite body panels. Geely vows the hybrid taxi will have an all-electric range of 30 miles, but it hasn’t provided any technical details about the plug-in hybrid system. The Chinese carmaker purchased LTC three years ago.

Much of the so-called “green bond” will be used in part to pay for a new manufacturing plant LTC is planning in Coventry, England, to produce the hybrid cabs. The 398,000-sq-ft facility, which will include a research and development center and at least 20 charging ports, will employ 1,000 people. Production capacity is estimated at 36,000 vehicles per year.

In addition to the TX5, LTC is planning several other hybrids and full-electric models, including light commercial vehicles. It is one of 14 companies developing alternative-powered cabs to meet stricter environmental regulations due in 2018 for London taxis.