UK van manufacturer LDV went into administration today after parent company GAZ failed to secure a rescue package, leaving the 850 workforce at it’s Birmingham plant without jobs.
Russian owned GAZ were forced to suspend production at the LDV plant in December, citing funding problems. Talks with Malaysian company Weststar broke down last week after it failed to come up with the funding to complete the purchase, despite the provision of a £5million bridging loan from the UK government.
In a statement issued today, GAZ said it was a sad day for the LDV workforce and British manufacturing.
“Over the last few months, we have fought relentlessly to find a solution that would ensure jobs and manufacturing remain in Birmingham.”
There is speculation that Weststar or indeed another buyer may be interested in buying what is left of LDV, but also concern that it will be stripped of it’s assets in the UK and taken abroad.
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