LDV vans 24 hours from collapse.

bo_drinker

LDV: Give us £5 million or we'll shut down in 24 hours

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By Jason Beattie Deputy Political Editor 20/03/2009
Crisis-hit van maker LDV last night warned it was less than 24 hours from shutting down.
The Russian-owned firm said that without Government cash it would not survive the week. Bosses want up to £5million to "keep the lights on" while they work on eco-friendly new vans.
Unions say 6,000 jobs are at risk - 900 at the Birmingham factory, the rest at suppliers.
LDV's Guy Jones said: "We need a significant development this week to keep the plant open." A spokesman for union Unite said: "They need a few million to keep going while they put together a bid for the green van model. They just need to keep the lights on."
Last night talks were taking place between LDV and Lord Mandelson's Department for Business and Enterprise.
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The Mirror has learned much of the money is needed to cover an estimated £1million tax bill.
Ministers recently rejected the firm's call for a £30million loan, saying Russian owner Gaz should stump up. The money would ensure the company survives until a management buy-out by Gaz chairman Erik Eberhardson who wants to move into eco-friendly green vehicles.
But the Government fears any rescue could see production moved overseas.
Ldv was founded in 1987 after a merger of Dutch DAF Trucks and the UK's Leyland Trucks.

amcluesent

Sadly, there's no tax payers money for lame ducks.

JasonLVC

When LDV first went into administration last time around, there was a nice little stitch up where a buyer (the Russians) were lined up BEFORE the administration was announced.

This left many many suppliers out of pocket as LDV had recevied the stock but then didn;t pay for any of it. Many suppliers went under as a result or had to write off huge levels of bad debts.

The new Russian owners are incredibly wealthy and knew what they were doing when they first purchased LDV from administration.

So there are two good reasons why LDV has to take its chances on is own. It stitched up honest suppliers first time around and now it wants to stitch up the taxpayer as well now. Not a chance.

On saying that, it'll be sad to see it go and more people made redundant.

staffie1

that's what happens when people stop buying your product.

Graham_Devon

Let them shut down then.

They haven't made a proft for over 7 years.

Radsteral

lights on" while they work on eco-friendly new vans.''

oh come on... eco friendly! i drove one of the new vans yesterday and a 2008 van, looked and drove far worse than my 2001 vv lt 35 van... and i am not one of these that wash and clean my van better than my house .

zedyy

A friend of mines works for LDV and he allegedly said that they had a big customer wanting 800+ vans but when he drove one, the wheel feel off so he cancelled the order.

staffie1

zedyy wrote: »

A friend of mines works for LDV and he allegedly said that they had a big customer wanting 800+ vans but when he drove one, the wheel feel off so he cancelled the order.

Good - they should supply better quality products then.

Count_Dante

'Eco-friendly vans' were just a fig leaf to try and secure cash from the government and thankfully they appear not to be taking the bait. Such technology will take years to develop properly and even then the vans may not prove popular. The final problem is that much bigger firms like Toyota are always much better placed to develop long term research like eco-friendly vans. LDV are the Rover of vans.

BenL

The only LDV vans I see are Royal Mail ones.

I might have a google to see what is going on with Saab at the moment as the Swedish said no to GM you aint having money to prop up the parent company.

The Russians should have to give LDV away writing off their initial investment then management try their buyout again (but without the buy out part).

We can then do the same with Vauxhall, Opel seems to be going down the same way with the German government. Noone wants to see the money they pump in be sent offshore to the parent company.

France gives Renault money today and they move production back to France from Slovenia, Peugeot have conditions applied too with their money/bailout.

Only the UK stick to any sort of rules whereas the rest of the world protect themselves.

bo_drinker

They don't seem to have come on much since the old Sherpa vans from back in the day. Other vans are like cars to drive now.

http://www.youtube.com/watch?v=zBi5MDC7cqc