F&I Management & Training

LDV's collapse serves as a bad omen for dealers, buyers and suppliers.

LDV had carved out a valuable niche as a specialist vanmaker for fleet and small business buyers. With investment in R&D, facilities and marketing it could have weathered the current downturn and been ideally placed for business buyers once the economy pulls out of recession.

However, it has been poorly served on three counts.

Where was the government?
The government failed to grasp the seriousness of losing a business which directly employs around 850 workers, supports a 70-strong dealer network and 130 servicing outlets, and is a key part of the UK's manufacturing infrastructure.

The government provided a bridging loan but was, of course, embroiled in a crisis of its own making. It took its eye off the ball whilst it tried to limit the damage done by the expenses furore and its dismal performance in local and European elections. The business secretary, Lord Mandelson, who did a commendable job in pushing through the scrappage scheme should have been fighting LDV's corner.

When you wish upon Weststar
Secondly LDV's fate was largely sealed by Weststar, the Malaysian vanmaker who were poised to buy the business but pulled out citing a lack of finance. Curiously it has resurfaced as a potential buyer of a business which will now be more affordable.

Running out of Gaz
Lastly the Gaz Group, the Russian automotive business owned by multi-billionaire Oleg Deripaska, failed to stick by its troubled subsidiary choosing instead, after just three years of ownership and plenty of promises, to hang it out to dry when the going got tough.

What is particularly worrying now is that Gaz is part of the Magna consortium behind the acquisition of GM Europe. If the LDV experience is anything to go by then Vauxhall may find itself out of the frying pan but into the mire.

DATED: 25.06.09

FEED: MT