LDV, the beleaguered vanmaker, was today placed in administration in a move that threatens thousands of UK jobs.
The Birmingham-based firm, owned by GAZ, the Russian energy group, employs 850 workers but warned that its closure could lead to the loss of more than 4,000 other jobs across its dealership and supply network.
Weststar, a potential white knight, said last week that its attempts to raise money to buy LDV had failed, although industry observers believe that the Malaysian group may table a new offer this week for LDV’s best assets.
The UK Government has already provided a £5 million bridging loan before ministers rejected WestStar’s plea for a further £45 million to support LDV.
Workers fear that administrators could liquidate LDV’s assets with any buyer taking machinery abroad. Such a move would end decades of production at the Washwood Heath site.
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LDV managers issued a final warning to the Government on Friday in a last ditch attempt to save the company. But a delegation of workers sent to Westminster to press the case for a £60 million loan was called off because the Cabinet reshuffle meant no ministers were available to meet them.
The Government was warned by LDV that the cost of its closure to the Treasury could reach £53 million in unemployment benefits and lost taxes in the first year. It calculated that the economy would lose more than £200 million in total wages, purchases and export revenue.
LDV has not built any vans since mid-December after a slump in demand. It warned the Government that if it fails it could be the end of van and light commercial vehicle making in the UK.
In addition to the workforce, LDV employs 1,200 people in dealerships and is a major customer for local suppliers.