Van firm LDV requests millions of pounds to secure future

It was revealed over the weekend that crisis talks took place between Unite and Chancellor Alistair Darling to discuss urgent financial aid to prevent a car plant from collapse.

It is believed that the struggling firm is van-maker LDV after shares in the company have lost almost 50% in value in the last three months as sales have plummeted.

Production at its facility in Birmingham has been put on hold since December 12 following a slump in demand.

The plant employs over 800 people in the Washwood Heath district of Birmingham and has a dealer network employing a further 1,200. The company also supports over 5,000 jobs in suppliers.

It is understand that LDV has asked the Government for millions of pounds in loans to help secure its future and is understood to be proceeding with a management buy-out.

The management buy-out of the firm, currently owned by Russian energy giant Gaz, would make the firm the first volume producer of environmentally friendly vans in the UK.

The company is understood to be talking to the Government about securing bridging support to complete the project.

The company said it is almost ready to proceed but needs the Government‘s support. A spokesperson said “short-term bridging support for this management buy-out from the Government will secure its future and the future of hundreds of jobs.”

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