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LDV rescue plan falls by the wayside

In a week when the UK car industry received good news regarding the takeover of Vauxhall, it was today revealed that the rescue package for LDV, the UK van maker, has failed. The company was in talks with Westar, a Malaysian vehicle maker, and the UK government had agreed to guarantee a substantial bridging loan. However, the company has reapplied for administration and nearly 850 jobs are under threat with a further 5,000 at risk in the company's supply chain.

There had been hopes that Russian owner Gaz would step in and try to arrange another rescue takeover bid, however yesterday the company emerged as a significant shareholder in the new Vauxhall operation. As a consequence, there are concerns that the company is set to cast aside LDV and move on to pastures new. Unless a new takeover emerges in the next few days it is highly likely that the LDV operation will be wound down in the short to medium term.

While many will blame the UK government for its lack of financial help from the operation, it is worth pointing out that the company is owned by a very wealthy Russian parent which has received government financial backing in the past.

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