F&I Management & Training

LDV's dealer network and factory staff face an uncertain future following the collapse of Weststar's acquisition plan after the Malaysian vanmaker failed to win sufficient financial backing for its bid.

This is a major setback for the troubled Birmingham-based vanmaker which had pinned its long term hopes on the deal. LDV employs 850 workers at its plant and its dealer network employs around 1,200 staff across 72 sales points and 132 servicing outlets.

LDV confirmed if has reapplied for administration to protect the assets of the business.

"The essential funds required to maintain the business and workforce as a going concern are not being made available," said a company statement.

Weststar, which manufacturers Maxus vans in Malaysia under licence, said it had pulled out of the purchase after failing to attract sufficient financial backing, thought to be mostly in Malaysia, although it also singled out the British government despite a £5m bridging loan at the beginning of April.

"Despite substantial efforts and a significant planned investment of its own funds, it has been unable to secure the remaining investment required to refinance the business due to the global financial crisis, compounded by the recent adverse developments in the UK motor manufacturing industry," said a company statement.

"Weststar has explored all known avenues to access this funding, including assistance from the UK government, but without this in place, it is not be possible to deliver the plan to secure jobs in the UK," it said.

One dealer on the brand's website said his business continued to trade profitably despite the problems which have engulfed LDV since its Russian owner, Gaz International, suspended production in December and sought a buyer for the business.

"LDV is a still a very viable and decent company. Even through this harsh period we have continued to sell, service and repair the vans and still turn a profit. The customers are happy to support a British product of good value with great service back-up. It is a pleasure to work with LDV and the people within it and the rest of the network," he said.

"Let's just hope that something can still be done, none of us deserve to have the rug pulled from under us, especially at the eleventh hour."

DATED: 07.06.09

FEED: MT