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LDV has issued a “final call” for state support ahead of an administration hearing on Monday. The Birmingham van maker has asked the government for a loan of £60m ($96m) to create a “profitable new business” that would help cut carbon emissions by producing electric vans.
On Monday, WestStar, a Malaysian vehicles business, said that it could not proceed with a takeover of LDV from Russian owner Gaz because it could not raise the necessary funds. The UK government has already provided a £5m bridging loan. Ministers rejected WestStar’s plea for a further £45m to support LDV, which employs 850 staff and underpins another 3,000 jobs at dealers and suppliers.
On Friday LDV warned that if it fails it could be the end of van and light commercial vehicle making in the UK. The company said that uncertainty surrounded Ford at Southampton and Vauxhall at Luton as a result of the difficulties facing those businesses. LDV calculated that the cost to the government of its own collapse would be £53m in the first year alone in benefits payments and lost tax revenues.