LDV workers face waiting game following Weststar takeover

May 6 2009 by Jon Griffin, Birmingham Mail

THOUSANDS of UK workers were today facing another anxious waiting game with a plan in sight for LDV following an eleventh-hour takeover by Malaysian group Weststar.

The Far East group emerged as the white knight behind a rescue deal which could safeguard up to 850 jobs at the Birmingham factory and thousands more in dealerships and supply chain outlets.

But it was not immediately clear if all the jobs will be saved, or when production will begin again.

The prospect of a deal, which is still to be finalised, staved off the collapse of the van-maker just hours before a High Court hearing scheduled for today which could have seen administrators appointed.

The proposed takeover by Weststar emerged after the Government stepped in with a £5 million bridging loan following months of calls for action from Lord Mandelson’s Business Department.

But hundreds of LDV workers remained at home on half pay today still waiting to hear when production will resume after nearly five months without a single van being manufactured at Washwood Heath.

Guy Jones, LDV PR and Marketing Director, said: “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’ve asked them to do for a long time.

“It is important to stress this is not a deal being done but they are going to provide assistance for a deal to be completed.”

Business Minister Ian Pearson said: “Weststar’s proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK.

“Whilst completion of the deal is not certain, it would have been irresponsible of the Government not to support it going forward. But this is a one-off bridging loan and it cannot be extended.”

Tony Woodley, Unite joint general secretary, said: “We are delighted at the Government’s backing for this company.