Lord Mandelson sends harsh message to LDV
BUSINESS Secretary Lord Mandelson has told crisis-hit LDV as it stands on the brink of collapse: “Sort yourselves out.”
The Cabinet Minister again ruled out an emergency £30 million bridging loan for the stricken Washswood Heath van-maker, and said: “We as a Government can’t just step in to take the place of every owner of every company facing difficulties of this sort.”
As talks aimed at saving the factory continued in London, Lord Mandelson said the state could not consider LDV’s plea for a loan without Russian owners GAZ “coming forward and demonstrating their commitment to the company.”
The Business Secretary said LDV had not repaid a previous £24 million Government loan, yet the taxpayer was now being asked to “step up to the plate” as the firm piled up further trading losses.
“I’m saying, ‘Sort yourselves out,’ first and foremost,” added Lord Mandelson.
The Government’s blunt refusal to come to LDV’s aid left Hodge Hill MP Liam Byrne, whose constituency includes the van-making plant, struggling to push through a rescue plan.
Mr Byrne is pushing the Department for Business to invest tens of millions of pounds more in the plant to clear the path for a management buyout, creating a world-leading electric vehicle manufacturer.
But he has warned that the plan can only succeed if owners GAZ, who are seeking to sell the van-maker for a buyout, make their own substantial investment.
