Thousands of jobs at risk at LDV
THOUSANDS of West Midland jobs were today hanging by a thread after the Government refused to bail out LDV with an emergency loan estimated at more than £20 million.
The future of the Washwood Heath van-maker – one of the region’s best known industrial names – looked bleak after the Business Department turned down LDV’s plea for aid.
Business Minister Ian Pearson, a leading aide to Lord Mandelson, appeared to sound the potential death knell for the company – and around 7,000 UK jobs – when he threw the ball back firmly in the court of Russian owners GAZ.
A rumour circulating among LDV workers suggested the business could be shut down by as early as Friday.
Mr Pearson, the key politician in the Government talks over LDV, said British taxpayers could not be expected to foot the bill for the van-manufacturer’s mounting losses.
“GAZ have come to us with a proposal for a loan to pay off their debts, so they can sell the company to a management buyout,” said the Minister.
“The taxpayer can’t be expected to pay for the company’s losses. GAZ as the owner must take responsibility before coming to the Government for more money.”
The blunt message from the Government followed a grim warning earlier that LDV was running out of time and cash after GAZ’s decision to offload the firm for a management buyout.
Outgoing GAZ chairman Erik Eberhardson - who is spearheading the attempts to raise money for a management buyout - had told BBC Radio 4’s Today programme: “Unfortunately, since the company is not producing it is not making enough revenue to cover its costs. It is literally running out of cash as we speak.”
