Indian Jaguar

Van Producer LDV Hopes For Government Loan To Save Them

Thousands of jobs could potentially be spared at the van makers LDV if the government agree to a £5m bridging loan that would lead to further investment from overseas companies.

Although LDV and Citroen van leasing have been on the up recently, production at LDV has been put on hold since December last year as a result of reduced demand in the new van market. Staff there have also agreed to a pay reduction of 10% recently and have even cur their week to 3-day work in efforts to bring costs under control at the site. The originally request to the government from LDV was for £30m to keep production stable. This was turned down by the government but as the situation at LDV has got worse, they have reduced their request.

Over 800 jobs could be saved if the government decide to award the loan, as well as helping more than 6,000 workers are are affected along the supply chain. A number of investors from overseas are apparently looking to put money into the company if the government take action. These include one of the bidders who previously failed to secure Jaguar Land Rover, but also Mahindra and Mahindra, an Indian group who were in the running to purchase JLR and also a van leasing company a year ago but was eventually beaten by rival Asian conglomerate Tata.

LDV’s new green ‘eco’ concept van is among the plans and accounts that they were asked to submit to the government. The government will be scrupulous in their examining of the details but those at the top of LDV are still optimistic. Erik Eberhardson, who is the chairman of Gaz, LDV’s Russian owner has said publicly that the company will survive. This is an attitude the the whole team share according to a spokesman who said “this isn’t dead in the water. BERR has agreed to investigate all options, and the MBO team believe they have the best plan.”

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