Van maker's loan plea

Time 13 years ago

van-maker-seeks-government-loanLDV, the Birmingham-based van manufacturer, has today asked the UK Government for a bridging loan.

The loan would be a short-term cash injection, to tide it over while a management buy-out is completed.

Currently owned by Russian giant Gaz – which is controlled by a friend of Lord Mandelson, Oleg Deripaska – the Russian-led UK team wants to take over the van maker and focus on green technology.

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LDV plans to team up with Coventry maker Modec, to produce a series of electrically powered Maxus vans.

Car dealer has already seen details of the new vans, which use batteries supplied by British company Axeon. The plans have much promise: LDV is actively seeking partners to help it introduce the vans later in 2009.

But in the meantime, LDV needs funds to tide it over and secure 900 jobs. It has already suspended van production due to a plunge in sales, which will be of concern to the brand’s nationwide dealer team.

More news on the state of LDV will come as we discover it…

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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