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LDV RESCUE FAILS

02-06-2009

Birmingham van maker LDV is once again seeking administration after a proposed rescue bid by Malaysian firm Weststar failed - placing hundreds of jobs in jeopardy.

The news was confirmed by a post on the company's blog today.

It said: "The Directors of LDV Group have been forced to reapply for administration to protect the assets of the business. This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available.

"The application for administration will be in court this morning and further information will be made available as soon as the facts behind this are clear.

Northfield MP Richard Burden, whose constituency includes the former MG Rover plant at Longbridge, insists it's still not too late to save the company.

He said: “Everyone who cares about the future of the Midlands automotive industry will be hugely disappointed by the announcement that LDV has been forced to reapply for administration.

“But this does not have to be the end of the story. A few weeks ago, the government put in £5m of bridging finance to win breathing space for a deal to be done between LDV and the Malaysian firm Westar. It did so because LDV deserves a future to produce a new generation of energy efficient vans. It still deserves that future.

“As LDV’s plant is in his Hodge Hill constituency, it is right that Liam Byrne MP is taking the lead on this issue. He is working with the unions, the government, the regional development agency, the administrators and, of course, Westar itself, to work out the next steps in the fight to save LDV.

“They have my backing and I am sure that of all the other MPs who care about the future of motor manufacturing in the West Midlands. It’s an industry that is one of the foundations of our regional economy. It is why LDV still deserves support to build its future with a viable partner.”

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