Uncertain future

The future of LDV remains uncertain after the government indicated that it would not provide a loan to ensure the long-term viability of the West Midlands van maker.

The Birmingham-based group, which is owned by Russian engineering giant Gaz, had appealed for a bridging loan of more than £20m from the UK government.

Led by outgoing GAZ chairman, Erik Eberhardson, the request marked an attempt to keep the van maker afloat during a proposed management buy-out (MBO) that would see LDV transformed into a leading manufacturer of electric vehicles, safeguarding hundreds jobs in the process.

A spokesman for the Department for Business, Enterprise and Regulatory Reform (BERR) said: ‘We have provided considerable support to LDV in recent years and continue to offer it help including assistance with its application for funding from the European Investment Bank.’

However, the government has since issued the following statement: ‘We have written to LDV and reiterated our view that the primary responsibility for supporting LDV and the management buy-out rests with Gaz, but in the absence of such support from Gaz, we cannot see a case for further assistance from the government.’