LDV has been thrown a lifeline with the government agreeing to provide the embattled van-maker with a £5m bridging loan, safeguarding up to 850 jobs. On Monday LDV's Russian owner, GAZ, signed an agreement to sell the Birmingham-based company to Malaysian vehicle manufacturer Weststar.
However, the deal hinged on LDV receiving the bridging loan because it would allow the company to survive
in the short term while Weststar tabled a finance deal.
Ian Pearson, business minister, says: "Weststar's proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK. While completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward, but this is a one-off bridging loan and cannot be extended."
LDV is attempting to relaunch itself as a 'green' vehicle manufacturer by producing all-electric versions of its Maxus van. Reports suggest that Weststar has promised to invest £50m in LDV with a view to doubling output by increasing exports to Malaysia.
LDV already partners Weststar after the latter signed a deal back in 2007 to import vans in kit form and manufacture them for the Malaysian market.
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