Van maker LDV to go into administration
The Birmingham Van maker LDV is set to go into administration of Monday, just weeks after receiving a £5million pound bridging loan from the Government. As a last ditch attempt to get backing from the Government a parliament lobby was planned by managers and workers but had to be cancelled because of a cabinet reshuffle that’s taking place leaving no ministered available to meet them.
Recent hope of a rescue deal collapsed when Malaysian firm Weststar was unable to raise sufficient funds and asked for a further £45million of assistance from the Government. Weststar withdrew from negotiations after it was revealed that production at the plant couldn’t commence for at least 4 months and for this reason they were wished to avoid investing any more money into LDV. The Malaysian firm are still believed to be interested in LDV but won’t go ahead and make any offer until the firm it is protected by administration.
There are around 850 workers at the Birmingham plant and thousands more in the supply chain that will lose their jobs if LDV disappears. It’s thought that Weststar may make an offer once LDV goes to administration and move any equipment purchased to the Far East ending any chance of saving UK jobs.