News

LDV dealers are worried over future financial liabilities after the firm's administrators PricewaterhouseCoopers cancelled van warranties, putting dealers in a difficult position with customers.

As many as 35,000 vans are still covered by warranty, but dealers say that committing to customer support when  many are already owed money by the collapsed van manufacturer - believed to be more than £100,000 in some cases - will only increase that debt.

The advice from David Lewis, chairman of the LDV dealer council and a regional director of Imperial Commercials, is that dealers are not obliged to carry out repairs and replacements under the manufacturer's warranty, but he recognises that many dealers will have loyal customers that they don't want to disappoint.

One dealer, who asked to remain anonymous, says they will offer to part-exchange LDV vans with newly-voided warranties for other brands, but believes many owners will accept the situation and stick with their existing vehicles.

Mike Fennell, MD of Southampton-based CV dealership Adams Morey, says the debt, accrued from warranty work and from buying stock, has to be worked through.

"Customer  service is key, in law we are not obliged to deliver the warranty work, but we have got to make a good judgement call on that.

"We have got to keep the business safe, however, we are a local business dealing with the local business community and if we walk away from it, customers will ask: 'Where is Adams Morey when we need them?'"

Fennell says it is possible the remaining LDV vans he has could be packaged and sold with an Adams Morey servicing package, but he ruled out a fire-sale to recoup any potential losses if LDV is wound up.

Multipart Solutions, a supplier of parts to the LDV dealer network, says it is working with the dealers and LDV parts suppliers to continue the supply of aftermarket spares. Multipart is not related to LDV.