Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Vanmaker in crisis as buyout collapses

Nigel Morris
Friday 20 March 2009 21:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The future of the vanmaker LDV was in doubt last night after a planned management buyout of the troubled business fell through. The company, which has not built any vehicles for three months, employs 850 people at its Birmingham factory, and supports thousands more at component manufacturers.

LDV has been approached by two potential foreign investors, it has emerged, but there are fears they could attempt to buy the brand and move production overseas. The company has been pressing the Government for a bridging loan, of between £4m and £40m, to restart production and begin work on a new "green" vehicle.

It has also asked Revenue and Customs to defer demands for National Insurance payments of £966,000.

Lord Mandelson, the Business Secretary, has distanced himself from decisions on LDV's future as its Russian parent company, Gaz, is owned by his friend Oleg Deripaska.

Ministers have rebuffed pleas for an emergency bridging loan, insisting Gaz should dip into its own pockets first.

A spokesman for the Department for Business, Enterprise and Regulatory Reform said: "We understand the management buyout is no longer an option. It has not been approved by parent company, Gaz. LDV has now told us it has been approached by two potential investors. They are overseas companies.

"We are contacting these potential investors today to find more information about their level of interest in LDV."

The team behind the buyout had aimed to produce a new range of electric vans. Tony Woodley, joint leader of trade union Unite, said: "With the jobs of up to 6,000 workers hanging by a thread, urgency is of the essence."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in