LDV-reliant warranties in crisis
“Having fully supported LDV and Maxus customers since financial difficulties first became apparent, individual dealers are now owed tens of thousands of pounds in unpaid debt and collectively the figure runs to millions.
“Add to this the devaluation of the remaining Maxus vans we have in our stocks and the picture worsens. As a consequence dealers cannot rule out reorganisations and redundancies in their business.
“Our drive as a network has always been to support customers and dealers continued undertaking warranty repairs despite no payments from LDV.
“The administrator wrote to dealers on June 9 advising they would not be able to honour warranties for vehicles sold before, during or after the administration.
“Maxus end-users effectively become unsecured creditors for any cost of repairs previously covered by the manufacturers’ warranty,” he added.
“LDV looked to be succeeding in selling the business to Weststar as a going concern which would have protected creditors in the supply chain and dealer network and employees.
But this fell apart and now the best we can hope for is a successful sale from administration where a new owner will see the value in our established UK network and want to work with us to rebuild.”
A long-established network of LDV business franchises throughout the UK includes 72 new vehicle sales dealers and 164 repair, service and spare parts suppliers.
Hopes of a rescue of LDV grew this week with up to nine would-be buyers signing confidentiality agreements ahead of further due diligence, with a range of UK and overseas bidders in the frame.
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