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London taxis to be built in Mexico.
MEXICO CITY: Investors are planning to bring a touch of London to the streets of Mexico and eventually, a little of Mexico back to Britain.
The British company that makes London taxis, Manganese Bronze Holdings, announced it has signed a deal with TransPacific Capital Corp. of Lyndhurst, N.J., to have the famed cabs built in Mexico and distributed throughout Latin America.
TransPacific is still seeking investment partners as well as a manufacturing site, probably near Mexico City.
But the company's co-chief executive, Jeff Bacsic, he hopes to start assembling cars by early next year.
"We're looking for a facility that would be able to manufacture between 15,000 and 20,000 vehicles a year," he said.
Bacsic said he hoped "to have a facility that could not only supply Mexico and Latin America, but ultimately manufacture vehicles that would be sold through LTI (a subsidiary of Manganese Bronze) ... to distributors in the U.S., Europe, sell within the U.K. itself."
The distinctive London cabs, famed for roominess and durability, are also a lot more costly than the tiny compacts favored by most Mexican taxi owners, who struggle to find $10,000 to buy a new base-level Nissan, a Korean-built Dodge Atos or an Opel-like Chevy.
British taxi dealer Mann and Overton says new London cabs cost between 27,000 and 32,000 pounds ($49,000 and $58,000), depending on the specifications.
Bacsic said his company plans to "drive down the cost of the vehicles," shooting for the $12,000 range.
The initial operation will use kits shipped from Britain, "but our total objective is to manufacture 100 percent of the components ourselves in Mexico or other Latin American countries to get the price down," Bacsic said.
"It's not very cost-effective to buy parts in the U.K., bring them across and assemble them in Mexico."
Manganese chief executive Ian Pickering, announcing the agreement Thursday during a report on his company's financial results, called it an "important step in our plans to expand the traditional taxi business into global markets." He gave few details.
The Manganese Bronze report noted that Mexico reportedly has some 600,000 taxis. Many must be replaced in the next few years because of new Mexico City rules that mandate four-door cars, ending the reign of the old Volkswagen bug as the taxi of choice in the Mexican capital.
Companies selling cabs also have benefited from Mexico's current low interest rates, which make it easier for taxi drivers and other consumers to finance new cars.
Bacsic said his company will import 50 London cabs from Britain, probably in July, and hopes to sell them to hotels or companies so it can start to establish a presence in the country.
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