Van maker LDV files for administration as rescue deal collapses

| June 8, 2009 | 0 Comments
”Van

Thousands of UK jobs are at risk today after van maker, LDV, has been forced into administration after a deal with Weststar (the Malaysian vehicle importer and contract manufacturer) collapsed.

LDV has been struggling of late and sought financial assistance from the Government earlier this year after it said it was “literally running out of cash” and warned that its collapse could be the end of van and light commercial vehicle making in the UK.

Today’s news of the failed rescue talks means thousands of jobs are at risk. LDV has a workforce of 850 but also has around 1,200 people working in van dealerships and thousands more across its supply network.

However, Sky News have been told that the Weststar team were still on site at LDV even after they withdrew talks.

Furthermore, the managing director of Weststar told Bloomberg News that it would make a fresh bid once LDV had entered administration since “this will save money”.

Birmingham-based LDV has a long-term partnership with Weststar after signing an alliance two years ago to make LDV commercial vehicles in Malaysia.

LDV, which is owned by Russian energy group, GAZ, has not built any vans since mid-December after a slump in demand.


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