Posts Tagged ‘Buy out’
LDV Van Producers Could Be Saved By Government
Thousands of jobs could potentially be spared at the van makers LDV if the government agree to a £5m bridging loan that would lead to further investment from overseas companies.
Although LDV and Citroen van leasing have been on the up recently, production at LDV has been put on hold since December last year as a result of reduced demand in the new van market. Workers at the plant recently dropped down to a three-day week and agreed to a 10% pay cut in efforts minimise outgoings. Originally they approached the government for help, seeking a £30million injection to keep going. This was not given buy the government initially but since LDV has reduced the amount they are asking for, the request is being reconsidered.
If the loan is given then it would help secure around 850 workers at LDV and also 6,000 more people who are affected in the supply chain. It has been reported that a few overseas investors have shown an interest in backing the firm if the government stumps up the money. These include one of the bidders who previously failed to secure Jaguar Land Rover, but also Mahindra and Mahindra, an Indian group who were in the running to purchase JLR and also a van leasing company a year ago but was eventually beaten by rival Asian conglomerate Tata.
LDV’s new green ‘eco’ concept van is among the plans and accounts that they were asked to submit to the government. The government will be going over all the details with a fine tooth comb but those in charge remain hopeful. The chairman of LDV’s Russian owner Gaz, Erik Eberhardson has announced that he is certain the firm can regain its strength and an LDV spokesman echoed this when he stated “This isn’t dead in the water. BERR has agreed to investigate all options, and the MBO team believe they have the best plan.”