Tuesday, March 24, 2009
LDV’s fate to be decided this week
The future of LDV and its factory in Birmingham will be determined this week as officials from the Government and the Russian-owned vanmaker discussed last ditch efforts to save the company from administration over the weekend.
LDV has now provided full access to financial, technical information to the Government in order for it to consider the vanmaker’s plans to focus on the manufacture of electric vehicles.
Ministers have been said to be reluctant to offer taxpayer support due to doubts over LDV’s debts and unresolved finances. LDV will also need to have a cash injection of £4 million to stay afloat in order to give enough time for potential investors to carry out due diligence on LDV’s business.
Indian manufacturer Mahindra and Mahindra is believed to be one of three suitors that are interested in investing in LDV. Another company is quoted in The Times as being from the "far east" and the final investor is rumoured to be an ex-executive of a major American carmarker.
Erik Eberhardson, the leader of the management buy-out, said: “I believe LDV can be saved. I continue to have faith in the long term green future of LDV Maxus in Birmingham and that the management buy-out is the best option to secure it."
Evgeniy Vereshchagin, chief executive officer of LDV Group, has stated that he believes the management team has demonstrated that there is a long term profitable future for LDV as a specialist commercial vehicle manufacturer, with low carbon technology ready for production this year.
He said: “The team will be working day and night with the government to secure this opportunity for the workforce, our partners and the British economy.”
LDV has asked the Government for an immediate injection of £4 million in the form of a bridging loan in order to keep the company afloat over the next week. It is understood that PricewaterhouseCoopers have been lined up to act as administrators if the company does go under.
Guy Jones, LDV’s marketing director regularly updates his blog to keep onlookers informed about the latest goings on with the company. You can read it here - http://blog.ldv.com/
DATED: 24.03.09
FEED: AM
LDV has now provided full access to financial, technical information to the Government in order for it to consider the vanmaker’s plans to focus on the manufacture of electric vehicles.
Ministers have been said to be reluctant to offer taxpayer support due to doubts over LDV’s debts and unresolved finances. LDV will also need to have a cash injection of £4 million to stay afloat in order to give enough time for potential investors to carry out due diligence on LDV’s business.
Indian manufacturer Mahindra and Mahindra is believed to be one of three suitors that are interested in investing in LDV. Another company is quoted in The Times as being from the "far east" and the final investor is rumoured to be an ex-executive of a major American carmarker.
Erik Eberhardson, the leader of the management buy-out, said: “I believe LDV can be saved. I continue to have faith in the long term green future of LDV Maxus in Birmingham and that the management buy-out is the best option to secure it."
Evgeniy Vereshchagin, chief executive officer of LDV Group, has stated that he believes the management team has demonstrated that there is a long term profitable future for LDV as a specialist commercial vehicle manufacturer, with low carbon technology ready for production this year.
He said: “The team will be working day and night with the government to secure this opportunity for the workforce, our partners and the British economy.”
LDV has asked the Government for an immediate injection of £4 million in the form of a bridging loan in order to keep the company afloat over the next week. It is understood that PricewaterhouseCoopers have been lined up to act as administrators if the company does go under.
Guy Jones, LDV’s marketing director regularly updates his blog to keep onlookers informed about the latest goings on with the company. You can read it here - http://blog.ldv.com/
DATED: 24.03.09
FEED: AM
