LDV on the brink again as rescue deal falls through

Date: Wednesday, June 3, 2009

Struggling LDV is once again on the verge of collapse. Prospective buyer Weststar Group of Malaysia has been unable to raise the funds required to purchase it and LDV’s directors have re-applied to put the ailing Birmingham-based business into administration.

 

Heavily dependent on domestic sales, LDV has been hit hard by the catastrophic collapse of the UK van market and the travails of its parent company GAZ. Having acquired the company in 2006, the Russian group admitted earlier this year that it could no longer continue to support it. LDV has not built a vehicle since before Christmas.


LDV has been working in partnership with Weststar to supply Maxus vans for assembly since September 2007.

 

Weststar statement in full:

"Weststar confirms that it has now completed the legal, financial and engineering due diligence on LDV.  However, despite substantial efforts and a significant planned investment of its own funds, it has been unable to secure the remaining investment required to refinance the business due to the global financial crisis, compounded by the recent adverse developments in the UK motor manufacturing industry.

The Weststar plan would transform LDV into an exciting global business, keeping manufacturing for Europe in the UK, securing thousands of British jobs and expanding into other markets, notably the ASEAN region. The launch of the Electric MAXUS would also support the UK government's vision for the industry and allow UK businesses and local authorities to locally source a low carbon vehicle.

Weststar has already invested significant resources to deliver this vision for LDV in Europe and Asia, but cannot continue to do this without confirmed access to the finance to secure the purchase. Weststar has explored all known avenues to access this funding, including assistance from the UK government, but without this in place it will not be possible to deliver the plan to secure jobs in the UK."



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