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.
Share this..
Related stories
250,000 Help-To-Buy ISAs opened since December
05/02/2015 The new Help-to-Buy ISA has proved to be a success so far with roughly 250,000 people choosing to open an account since its launch on the 1st December. Chancellor George Osborne has announced that the Help-to-Buy ISAs have been opened at a rate of one every 30 seconds, or about 3,000 people a day. Data from banks also shows that 75% of the new savers are under the age of 30....
Read MoreWill Royal Bank Of Scotland Need More Funding After The £12 Billion Rights Issue?
While Royal Bank of Scotland (RBS) may be on the verge of securing one of the largest UK fund raisings of recent times, via a £12 billion rights issue, a report from Deutsche Bank AG suggests that RBS may need to return to the market some time soon for more funding. The report from Deutsche Bank AG does not suggest that RBS is in any trouble. But it does cast doubt on the strength of the group&r...
Read MoreGeneral Motors announces major U-turn on GM Europe
Despite months and months of negotiations with the Canadian consortium Magna as well as the German government, General Motors has today announced plans to retain GM Europe and called off the expected disposal. Initially the move has been welcomed in the UK where unions believe this will offer more job security to the Opel division which employs thousands of workers in the country. But what about t...
Read MoreGordon Brown Cool On Calls For 50% Income Tax Rate
It seems as though there is a growing call for an increase in the higher rate of tax from 40% to 50%, hitting those with annual incomes in excess of £100,000. In what many are claiming to be a call back to the Labour movement, the Unions and a number of MPs will step up demands for a change at the next party policy meeting. Challenged on the claim Gordon Brown was cool on the idea suggesting th...
Read MoreRegional recession index shows hardest hit areas of the UK
The uSwitch.com regional recession index has highlighted the varying degree of performance across the UK with regards to property prices and unemployment. Those living in the Swindon area will be dismayed to learn that the city has seen unemployment explode by 197% over the last 12 months making it officially the worst hit area in the UK.
Swindon has also seen a 16% fall in property...