UK manufacturer LDV begs government for support
The Russian owners of LDV Vans have today approach the UK government for support in the region of £30 million. The company is not requesting a direct loan from the government but is suggesting that the process which began last month is speeded up and up to £2.3 billion of loans and guarantees are made available to the vehicle manufacturing sector in the UK.
The situation has been slightly complicated by the presence of the Russian company and the indirect connection with a Russian business person with whom Lord Mandelson has reportedly had dealings with in the past. However when you consider that up to 850 jobs are at risk in the LDV factory alone as well as 1,200 in the LDV Van dealer network, not to mention 4,000 indirect jobs at supplies in the UK, there could be serious consequences if the emergency funding does not materialise.
This is the more serious request from the vehicle manufacturing industry to date and places the UK government in a very difficult situation bearing in mind the billions of pounds spent on the financial sector. If finance and guarantees are made available to the likes of LDV Vans this could open the floodgates for other businesses and other sectors to apply directly to the UK government.
Share this..
Related stories
UK 'hardest hit in Europe' by crunch
Britain is likely to be harder hit by the credit crunch than other European nations, experts have said.According to economists the relatively high levels of exposure to debt among consumers and the sharp decrease in house prices will affect UK consumers markedly, the News of the World reports.The economy's high exposure to the financial services and banking sector - within which the credit crunch...
Read MoreWhy was the Dunfermline Building Society sold so quickly?
The takeover of the profitable areas of the Dunfermline Building Society was confirmed today with Nationwide agreeing to retain the Dunfermline name in Scotland. The takeover of the profitable operations has caused a major rift between the Scottish government and the UK government with a suggestion that the deal was rushed through with very little input from the Scottish executive.
...
Is it sensible to split the UK banking sector?
For many years the strength of the UK financial sector has been the very small number of large banking institutions which had very strong balance sheets and access to massive amounts of capital from the money markets. However, the UK government and the Bank of England would now appear to be looking towards a break-up of the likes of Lloyds bank, Royal Bank of Scotland and Northern Rock in order to...
Read MoreCould The Credit Crunch Happen Again?
As the havoc which the US based credit crunch has caused is laid bear for all to see many people are starting to ask if the same situation could happen again? Or have we learnt our lesson?
The truthful answer is that a similar credit crunch could happen again in the future if and when financial institutions attempt to squeeze every dollar out of the market. The blame cannot be lai...
UK government pledges help for Corus workers
The UK government has come out in support of the 2,500 Corus employees who lost their jobs earlier this week with a commitment to a support package to try and get as many of them back into work as possible. The government announcement has been backed up by Euro MP Glenys Kinnock who is strongly in favour of a support and benefits scheme designed to offset the obvious serious impact of these job lo...
Read More