News

As Motor Transport went to press, the future of ailing van manufacturer LDV hung in the balance following the government's rejection of the firm's plea for a £30m bailout.

The government took a tough stance on the request to use taxpayer's money to  save the firm, saying that LDV's parent company, Gaz, should provide the necessary funding. However, Gaz has since confirmed its plans to offload the Birmingham-based manufacturer.

Management at LDV are attempting to orchestrate a buyout, led by outgoing Gaz chairman Erik Eberhardson, which would ensure the firm's survival until it relaunches in the 'green' van market.

Eberhardson warned business secretary Lord Mandelson that LDV would collapse "within days" if it did not receive the £30m bridging loan, putting up to 6,000 jobs at risk.

Eberhardson added: "We want to explore every avenue possible to save the company and the jobs. We still think the company has a strong potential future as an electric van manufacturer, and the new ownership team, which is separate from Gaz, is prepared to invest its resources in that new venture if the government  is able to give a short-term loan."

Guy Jones, marketing director of LDV, says: "We are currently trialling zero-emissions vans with supermarket, delivery and distribution partners and will begin selling our all-electric range within 12 months if we get the support we need."

Following the government's rejection, Jones adds: "We are now looking at revised plans and all other options. We [still] plan to secure the future of the business."

The firm, which employs 900 people at its Washwood Heath plant in Birmingham, suspended production at the start of December due to plummeting sales.