F&I Management & Training

Struggling van-maker LDV has asked the government for millions of pounds in loans to help secure its future. It wants access to bridging loans to tide it over while it presses ahead with plans for a management buy-out. The company, which employs 900 people in Birmingham, has seen sales plummet and suspended production in December. The management buy-out of the firm, currently owned by Russian company Gaz, aims to make it into the first big producer of electric vans in the UK. Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson. BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer. The company is warning the failure of its plans could cost 900 jobs directly and thousands more among suppliers. 'Sign of faith' Outgoing Gaz chairman Erik Eberhardson hopes to lead the management buy-out. "We are almost ready to go, but we need the government to do its bit," he said. "I am confident they understand the potential to secure this exciting green technology in Britain - and the need to move very quickly." A company spokesman added: "Short-term bridging support for this management buy-out from the government will secure its future and the future of hundreds of jobs." Liam Byrne, Labour MP for Birmingham Hodge Hill, said: "LDV's plans for a management buy-out are an excellent sign of faith by the... leaders in the company. "For some weeks now I have been working closely with the company as they have shaped their ambitious plans for winning a big share of the 'green van' market." LDV was bought by the Gaz group two years ago. In November it announced 95 jobs were to be axed at its Washwood Heath factory in Birmingham.

DATED: 25.02.09

FEED: AW