14/06/2017
In the bustling world of automotive innovation, particularly within the realm of electric and low-emission vehicles, the narrative often spans continents and involves complex strategic manoeuvres. One such compelling story involves the Chinese automotive giant, Geely, and its significant investments in British automotive heritage and forward-thinking electric vehicle technology. While whispers of ambitious plans in the American Midwest once filled headlines, the real transformative action has been unfolding across the Atlantic, particularly in the United Kingdom, where Geely is spearheading a revolution in urban transport with its acquisition of two key players: Emerald Automotive and the venerable London Taxi Company.
This article delves into the intricate web of ownership, development, and strategic partnerships that define this exciting chapter in the automotive industry. From the quiet offices in Hazelwood, Missouri, to the state-of-the-art assembly lines in Coventry, England, we explore how Geely's vision is bringing next-generation, environmentally friendly taxis and delivery vans to life, promising not only a greener future but also significant economic opportunities and job creation on British soil.
Who Owns Emerald Automotive and London Taxi?
At the heart of this transatlantic automotive narrative is the powerful Chinese automaker, Geely. Officially known as Zhejiang Geely Holding Group, this conglomerate is a major player in the global automotive industry, with a diverse portfolio that includes well-known brands such as Volvo Cars and, crucially for our story, the London Taxi Company (LTC), now known as the London Electric Vehicle Company (LEVC). Geely's acquisition strategy has been instrumental in modernising and electrifying these historic British marques.
Emerald Automotive, a British startup initially focused on developing green delivery vehicles, also became part of the Geely family in 2014. This acquisition was a strategic move by Geely to bolster its capabilities in electric vehicle (EV) development, particularly as new, stringent emission regulations for taxis were set to be introduced in London by January 2018. By bringing Emerald's expertise in electric powertrains and lightweight chassis design under its wing, Geely aimed to accelerate the development of its low-emission vehicle offerings, starting with the iconic London black cab.
This combined ownership means that both the heritage of London's taxis and the innovative spirit of Emerald's EV technology are now powered by Geely's substantial financial backing and global manufacturing prowess. The synergy between Emerald's technology and the London Taxi Company's vehicle platforms has been a cornerstone of their joint development efforts, leading to the creation of advanced electric vehicles that are set to redefine urban mobility.
The Hazelwood Conundrum: A Transatlantic Tale of Ambition
Five years ago, the city of Hazelwood, Missouri, had high hopes for Emerald Automotive. The British startup borrowed $3 million from Hazelwood and an additional $2 million from the Missouri Technology Corporation, promising to build electric delivery vans and create 600 jobs in the area. The vision was ambitious: a plant running by 2014, producing 10,000 vehicles annually by 2015. However, fast forward to today, and Emerald's North American headquarters in Hazelwood remains a remarkably quiet place, with just two employees based there.
So, what happened to these grand plans? The driving force behind the initial project, the promise of significant job creation in a region still recovering from the recession, seemed to stall. Emerald had initially sought a substantial $100 million loan from the U.S. Department of Energy to fund its $160 million manufacturing facility, but when this federal loan program faltered, the company was forced to seek private investors. This search ultimately led to Geely's acquisition in 2014.
While the focus of Emerald's operations shifted across the pond to the UK following Geely's investment, the commitment to Hazelwood, according to Emerald's marketing and corporate communications director Gary Marble, has not wavered. During the acquisition negotiations, both Hazelwood and the Missouri Technology Corporation extended their loan agreements with Emerald until the end of 2018. This extension was granted on the understanding that Geely, despite having the means to pay off the loans, would remain committed to the original purpose: job creation in Missouri, with a benchmark of 300 jobs and 4,000 vans annually.
City Manager Matt Zimmerman from Hazelwood firmly believes that Emerald is still making progress, albeit on a different timeline. He states, “It’s really a question of timing. Not a question of ‘if,’ more a question of ‘when.’ ” The company asserts that the practical aspects of their work on electric taxis in the UK will be directly applicable to the production of delivery vans in Hazelwood. The significant resources now available through Geely mean that the long-term plan to build a factory in Hazelwood is still very much alive, even if the immediate focus is elsewhere.
The UK's Green Revolution: TX5 Taxi & T-001 Van
While Hazelwood awaits its turn, the UK has become the epicentre of Geely's electric vehicle ambitions. A staggering investment of nearly $400 million (or £250 million as per UK reporting) has been poured into a state-of-the-art assembly plant in Coventry, England. This cutting-edge facility boasts an annual production capacity of 30,000 to 36,000 vehicles and is projected to create 1,000 new jobs, marking a significant boost for the British automotive sector.
The primary focus of this new plant is the development and production of the new London black cab, the TX5. This vehicle is a revolutionary step for the iconic taxi, designed from the ground up to meet London's stringent new emission regulations. The TX5 features an extended-range electric powertrain, combining a substantial EV-only range with the flexibility of a petrol range-extender for longer journeys, ensuring zero emissions in city centres while eliminating range anxiety for drivers. The design of the TX5 was overseen by former Volvo design chief Peter Horbury, lending it a distinctly modern yet recognisably classic aesthetic.
Crucially, the TX5 taxi shares its advanced aluminium chassis and powertrain with another key vehicle: the Emerald T-001 delivery van. This strategic commonality allows for efficient development and production, leveraging shared components and engineering expertise. The T-001 van is designed to cater to the booming e-commerce market, offering a 66-mile EV range and the capacity to carry a 1400kg payload on three standard pallets. It is poised to become one of the world's first mass-produced extended-range electric delivery vans, promising zero-emission deliveries in urban environments at a time when light commercial vehicle mileage is dramatically increasing.
Both the TX5 and the T-001 were expected to roll out of the Coventry plant around September next year (referring to the original article's timeline from 2016/2017). With the TX5's sales projected at up to 5,000 units per year, the high production capacity of the Coventry plant strongly suggests that Geely anticipates significant demand for the T-001 delivery van, potentially up to 30,000 units annually. This dual-pronged strategy positions Geely, through London Taxi and Emerald, at the forefront of the electric commercial vehicle market in the UK and beyond.
Emerald's Broader Horizons: The US Postal Service Bid
Beyond the immediate focus on London taxis, Emerald Automotive has another significant opportunity on the horizon that could finally bring substantial manufacturing to Hazelwood: a bid to develop a new delivery vehicle for the U.S. Postal Service (USPS). The USPS is looking to replace its aging fleet, a contract potentially worth around $5 billion for 180,000 vehicles.
Emerald is one of 15 companies selected by the Postal Service to develop prototypes for an energy-efficient vehicle. This is a massive undertaking, and if selected, Emerald has stated its intention to build these Postal Service vehicles in Hazelwood, Missouri. Such a contract would be transformative for the region, potentially creating more than 1,300 jobs – a figure that dwarfs the initial 600 jobs promised in 2011.
Hazelwood officials, including City Manager Matt Zimmerman and Mayor Matthew Robinson, have been actively engaged, visiting Emerald executives and touring the Coventry factory site in England. They received assurances that if Emerald secures the USPS contract, or indeed proceeds with its t-001 delivery vans for the U.S. market, production would occur in Hazelwood. The reasoning is pragmatic: the cost of overseas shipping for such a large volume of vehicles would be prohibitive, making local production in the U.S. a logical necessity.
This potential USPS contract represents a significant turning point for Emerald's U.S. ambitions. It provides a clear, large-scale project that could finally activate the long-awaited manufacturing facility in Hazelwood, bringing the promise of substantial job creation to fruition. While the focus has largely been on the UK's taxi market, this opportunity underscores Geely's broader strategic vision for Emerald's technology and its commitment to the U.S. market in the long term.
Challenges, Progress, and the Road Ahead
The journey for Emerald Automotive has been a long and winding one, marked by shifts in strategy and significant delays from its initial projections. The transition from a startup seeking federal loans to a subsidiary of a global automotive giant like Geely has fundamentally reshaped its path. Gary Marble acknowledges the patience of those involved, stating, “Major progress takes time. You can’t go in and build a $200 million operation, from scratch with a brand new vehicle, in a year. It’s going to take time.”
Despite the delays in Hazelwood, Emerald maintains that its work on the TX5 taxi in the UK has provided invaluable experience, allowing the company to take a concept "from paper to production." This hands-on experience in bringing a complex electric vehicle to market is considered a massive leap forward in their capabilities. The company has grown significantly, from five employees to over 100 in the two years leading up to the provided information (2016/2017), demonstrating substantial progress in its engineering and development teams.
The Missouri Technology Corporation, which provided one of the initial loans, has also been kept abreast of developments, confirming that Emerald remains "on track and further developing its technology under its parent company Geely." While speculation in the British automotive press occasionally suggests that Emerald's delivery vans might also be built at the new Coventry plant, officials from Emerald and Hazelwood have consistently reiterated that U.S.-market specific vehicles, particularly for the Postal Service, would be built in Hazelwood due to logistical and cost considerations.
Key Milestones and Commitments:
- 2011: Emerald announces plans for Hazelwood plant (600 jobs, 10,000 vans/year by 2015).
- 2014: Geely acquires Emerald Automotive.
- 2014: Hazelwood and Missouri Technology Corporation extend loans to end of 2018.
- 2015/2016: Construction of new Geely plant in Coventry, UK, begins.
- 2016/2017: TX5 taxi and T-001 van expected to roll out from Coventry.
- Ongoing: Emerald develops prototypes for US Postal Service vehicle.
- Future: Commitment remains for Hazelwood plant (300 jobs, 4,000 vans/year benchmark for loan repayment).
Comparative Overview:
| Feature | Emerald Automotive (Initial Hazelwood Plan) | London Taxi Company (Post-Geely Acquisition, UK) | Emerald Automotive (Future Hazelwood Potential) |
|---|---|---|---|
| Primary Focus | T-001 Electric Delivery Vans | TX5 Electric Taxis & T-001 Vans | T-001 Delivery Vans, USPS Vehicles |
| Location | Hazelwood, Missouri, USA | Coventry, England, UK | Hazelwood, Missouri, USA |
| Investment | $160M (sought $100M federal loan) | ~$400M / £250M (Geely) | Potentially significant, tied to USPS contract |
| Job Creation (Projected) | 600 jobs | 1,000 jobs | 1,300+ jobs (with USPS contract) |
| Production Capacity (Projected) | 10,000 vans/year (by 2015) | 30,000-36,000 units/year (total) | 4,000 vans/year (loan benchmark), potentially higher with USPS |
| Status | Delayed, long-term commitment reiterated | Operational, producing TX5 & T-001 | Conditional on USPS contract, long-term plan |
Frequently Asked Questions (FAQs)
Who owns Emerald Automotive and London Taxi?
Both Emerald Automotive and the London Taxi Company (now known as LEVC) are owned by the Chinese automotive giant, Zhejiang Geely Holding Group. Geely acquired Emerald in 2014 and has been the owner of London Taxi for several years prior.
What is the TX5 taxi?
The TX5 is the new generation of London's iconic black cab. It's an extended-range electric vehicle developed by the London Taxi Company (LEVC) under Geely's ownership. It features an electric powertrain with a petrol range-extender, designed to meet strict new emission regulations in London and offer zero-emission capabilities in urban areas.
What is the T-001 delivery van?
The T-001 is an extended-range electric delivery van developed by Emerald Automotive. It shares its advanced aluminium chassis and powertrain with the TX5 taxi. It's designed for urban logistics, offering a significant electric range and a substantial payload capacity, making it ideal for zero-emission deliveries.
Why was the Hazelwood plant delayed?
The initial plans for the Hazelwood plant in Missouri were delayed primarily due to the stalling of a crucial $100 million loan from the U.S. Department of Energy. This forced Emerald to seek private investment, which eventually led to Geely's acquisition and a shift in immediate strategic focus towards the UK for the development of electric taxis.
Will Emerald Automotive still build vehicles in Hazelwood?
According to Emerald and Hazelwood city officials, the company still has every intention of building a factory in Hazelwood, Missouri. This commitment is tied to the original loan agreements and is reinforced by the potential for a large U.S. Postal Service contract, which would necessitate local production due to prohibitive overseas shipping costs.
What is the significance of the US Postal Service contract for Emerald?
The potential U.S. Postal Service contract is highly significant. It involves the development and potential purchase of 180,000 energy-efficient delivery vehicles, representing a contract worth approximately $5 billion. If Emerald is selected, it would mean a massive manufacturing operation in Hazelwood, potentially creating over 1,300 jobs and finally bringing the long-promised production to the U.S.
What are low-emission taxis?
Low-emission taxis are vehicles designed to produce significantly fewer, or zero, tailpipe emissions, particularly in urban environments. The TX5 London taxi, for example, is an extended-range electric vehicle, meaning it can operate purely on electric power for a considerable distance, emitting no local pollutants, and uses a small petrol engine only to extend its range when needed, making it a highly efficient and environmentally friendly option for city transport.
Conclusion
The journey of Emerald Automotive and the London Taxi Company under Geely's ownership is a testament to the complex, global nature of modern automotive development. While the initial fanfare around the Hazelwood plant in the U.S. has been replaced by a quiet determination, the significant investment and rapid progress in the UK, particularly at the new Coventry plant, highlight Geely's commitment to leading the charge in electric commercial vehicles. The TX5 taxi and T-001 delivery van represent the vanguard of this new era, embodying a blend of British heritage and Chinese innovation.
For the UK, this means a thriving new manufacturing hub, creating skilled jobs and positioning the country at the forefront of green transport solutions. For Hazelwood, the promise of a manufacturing future remains, now inextricably linked to the potential of a massive U.S. Postal Service contract. The story of Emerald and London Taxi is one of patience, strategic adaptation, and a clear vision for a future where urban transport is cleaner, more efficient, and globally connected. The wheels are turning, and the quiet revolution in electric vehicles continues to gather pace, promising a greener ride for us all.
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