Rescue deal for LDV to be finalised
The details of a last-ditch deal to save van maker LDV from going bust are being finalised in a move that could safeguard hundreds of jobs.
The takeover by Malaysian firm Weststar was agreed on Tuesday night, with the help of a Government loan of up to £5 million.
Weststar has agreed to buy the Birmingham-based business and invest money into the plant, which has been at a standstill since before Christmas.
The company was due to go into administration, raising fears that the 850 workers would be made redundant and the jobs of thousands of employees at other companies would also be lost.
But a deal was signed with Weststar to buy the entire business, bringing some rare good news for the beleaguered motor industry, which has been battered by the recession.
Negotiations between the company, LDV and Government officials are continuing to finalise the deal and avoid administration.
Guy Jones, a spokesman for LDV, told the BBC: "This is not the end of the process but it is very good news for everybody. This is a significant step. This is the Government getting involved, which we have asked them to do for a long time."
Unions warmly welcomed the breakthrough, but said trying to secure assistance to save LDV had been like "pulling teeth".
The Government made it clear the aid was a one-off bridging loan which could not be extended.
The company has not built any vans since before Christmas, after its Russian owner, Gaz, decided to sell the business.
