Van maker LDV files for administration

| April 30, 2009 | 0 Comments

Crippled van maker LDV, owned by Russian oligarch Oleg Deripaska, announced yesterday that the company had applied to go into administration on 6th May, but trade unions are calling for the government to give a £4 million bailout sum, in order to keep the manufacturer going while rescue talks are underway.

LDV is faced with administration due to the fact that the Malaysian vehicle importing group Westar have not been able to complete a buy-out deal in time.

Approximately 800 people are employed at its Birmingham factory, although the majority have not been into work since production stopped back in December as sales crashed and the company has over £20 million in debt.

The firm has paid employees up until last week, although no further payments could be guaranteed.

A spokesman for LDV has said the chances of a rescue deal being reached before administration are very slim and PricewaterhouseCoopers have been lined up as administrators.

Along with the 800 jobs at LDV, and the 1,200 people working in van dealerships, thousands of other indirect jobs may also be lost as the suppliers may also go under following the demise of the company.

It would be a further tragedy to the ailing British car industry, although the writing seems to be on the wall for LDV.

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