LDV: Redundancy fear as workers return
“The bridging loan enables LDV to pay the minimum amount of forward overheads, including employee payments, to maintain the business as a going concern with the workforce intact.
“As has been stated previously, the sale of the business as a going concern to Weststar is in the best interests of LDV employees, suppliers, dealers, business partners and the UK economy.
“Today was an essential step towards the completion of a deal to secure an exciting future for LDV, as part of a new global business as outlined in the press release by Weststar. This sends a positive message about the potential future available to LDV and its business partners. This is not, however, the completion of the process and whilst a sale agreement has been signed, due diligence has to be completed before the sale can be finalised. LDV requires the full support of all its creditors and employees to complete the sale process, restart production and launch exciting new products such as the Electric Maxus into the market as soon as possible.
“We appreciate the last few months have been exceptionally difficult for many of our employees and valued business partners, however we are more confident than ever that supporting this process will ensure the best outcome in the long term for everyone.”
LDV has warned that redundancies were likely under Weststar’s ownership as production is reduced to match slack demand. Writing on the company’s website, Martin Donegan, the Unite union representative at the Drews Lane site, said that, under the failed buy-out plan launched by LDV executives, production would have been cut to 200 vehicles a week. “If Weststar were to take the same option then the workforce would have to be reduced by at least 20 per cent as current manning levels are set at 247 vehicles per week,” Mr Donegan said. A reduction of that size could result in the loss of up to 170 jobs at the factory.
Spokesman Guy Jones, the company’s marketing and PR manager, said Weststar had not yet drawn up a production plan and he could neither confirm nor deny Mr Donegan’s estimate.
