News

The survival of LDV is again in doubt after the van-maker was forced to file for administration for the second time in a month.

At the beginning of May, Weststar agreed to buy the Birmingham-based manufacturer from owner GAZ,  subject to due diligence. Following the agreement, the government made available £5m in bridging loans to facilitate the change-over. However, according to Sky News, Weststar has been left with a £45m shortfall in funding to complete the deal.

In a brief statement, LDV says: "The directors of LDV Group have been forced to reapply for administration to protect the assets of the business. This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available."

Business minister Ian Pearson says: "We gave LDV breathing space, a bridge to the future – but in the event, unfortunately, Weststar has been unable to cross that bridge."

Officials from  the union Unite have expressed their concerns. David Osborne, Unite national officer, says: "After all the hard work which has gone into trying to secure the LDV plant, it is extremely worrying that its future is once again at risk.

"The failure of Weststar to secure financial support from the banks for its takeover of the van manufacturer puts thousands of jobs across the Midlands at risk again."