LDV Finally Goes Into Administration

• News
• Published: 08 Jun 2009 in Motoring and Van Insurance

Thousands of jobs are under threat at van maker LDV after the firm applied for administration after the collapse of a rescue deal.

Managers at the Birmingham-based firm had appealed to the Government for a loan of £60 million to help save the company after a rescue deal by Malaysian firm Weststar fell apart.

But a delegation by workers to Westminster aimed at pressing home the case had to be called off because the Cabinet reshuffle meant no ministers were available to meet them.

LDV, owned by Russian giant GAZ, has applied court for administrators to be appointed, with hopes of saving the business and its 850 workers` jobs fading if its assets are sold quickly.

The van market has suffered a slump in demand as hard-pressed firms and motorists have attempted to cut costs by holding back on new purchases, seeking out cheaper van insurance, and driving more economically. The downturn meant LDV has not built any vans since mid-December.

It is also thought the move could have a wider impact on the motor manufacturing industry as it will put at risk the jobs of around 4,000 workers involved in the distribution of LDV vans or supply parts and other services.