Faster production is Russian along at LDV!

Jun 8 2007 By Jon Griffin, Birmingham Mail

REBORN Birmingham van maker LDV is doubling production less than a year after massive losses threatened its future.

The Washwood Heath plant has seen up to 80 new jobs created and the weekly line rate increase to up to 300.

The "Russian revolution" since GAZ took over last July has set the firm on course to drive back into profitability for the first time in 18 months.

The transformation in fortunes comes less than two years after LDV collapsed into administration with debts of tens of millions of pounds.

LDV's Steve Miller said: "It has been a real turnaround since we went into administration in December 2005.

"It has been a remarkable transformation given what has happened at MG Rover, Peugeot and Jaguar.

"It has been a major effort and the new Russian owners have backed us all the way."

Mr Miller said sales were up by 45 per cent year on year.

"We are looking to get back into profitability this month. We were losing £2 million to £3 million a month when Gaz took over.

"We were producing 150 vehicles a week and we are now up to 289, with plans to go up to 300 by the end of this month.

"The line rate has virtually doubled and productivity has improved by 38 per cent.

"We have already taken on 75 to 80 new people and we may take on more.

"The money that has been invested into the business by Gaz has enabled us to launch new products."

At the Commercial Vehicle Show in April, LDV unveiled a string of new products, including a chassis cab range, minibuses and new engines.