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| Version 7 | Version 8 |
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| Van firm LDV seeks government aid | Van firm LDV seeks government aid |
| (about 2 hours later) | |
| Struggling van-maker LDV has asked the government for up to £30m in loans to help secure its future and save jobs. | Struggling van-maker LDV has asked the government for up to £30m in loans to help secure its future and save jobs. |
| It wants bridging loans to tide it over as it presses ahead with plans for a management buy-out. | It wants bridging loans to tide it over as it presses ahead with plans for a management buy-out. |
| The firm, which employs 900 people in Birmingham, has seen sales fall after suspending production in December. | The firm, which employs 900 people in Birmingham, has seen sales fall after suspending production in December. |
| Russian parent firm Gaz said LDV was "literally running out of cash", and unable to cover its costs, putting thousands of supplier jobs at risk. | Russian parent firm Gaz said LDV was "literally running out of cash", and unable to cover its costs, putting thousands of supplier jobs at risk. |
| We are almost ready to go, but we need the government to do its bit Erik Eberhardson, who hopes to lead a management buy-out of LDV class="" href="/1/hi/business/7906047.stm">See also: Jaguar asks for pay freeze | |
| Erik Eberhardson, who is the outgoing Gaz chairman, hopes to lead the management buy-out. | Erik Eberhardson, who is the outgoing Gaz chairman, hopes to lead the management buy-out. |
| "Unfortunately since the company [LDV] is not producing, it is not making enough revenue to cover its costs and the company is literally running out of cash right as we speak," he said. | "Unfortunately since the company [LDV] is not producing, it is not making enough revenue to cover its costs and the company is literally running out of cash right as we speak," he said. |
| "It's 850 jobs in the plant, 1,200 jobs in the dealer network and about 4,000 jobs in the supplier industry which are at risk". | "It's 850 jobs in the plant, 1,200 jobs in the dealer network and about 4,000 jobs in the supplier industry which are at risk". |
| He added: "We need £20-30m, depending on how we structure it," he added. | He added: "We need £20-30m, depending on how we structure it," he added. |
| Ultimate decision | Ultimate decision |
| Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson. | Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson. |
| LDV HISTORY Part of state-owned British Leyland (pictured) in the 1970sBought by Dutch firm DAF in 1987Became independent firm LDV in 1993 after a management buy-out2005 - bought by private equity group Sun Capital2006 - purchased by Russian company GAZ | LDV HISTORY Part of state-owned British Leyland (pictured) in the 1970sBought by Dutch firm DAF in 1987Became independent firm LDV in 1993 after a management buy-out2005 - bought by private equity group Sun Capital2006 - purchased by Russian company GAZ |
| BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer. | BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer. |
| But the shadow chancellor, George Osborne, said the government should not intervene to bail-out the van-maker. | But the shadow chancellor, George Osborne, said the government should not intervene to bail-out the van-maker. |
| Instead, ministers should establish a national loan guarantee scheme to help firms facing such difficulties, Mr Osbourne said. | Instead, ministers should establish a national loan guarantee scheme to help firms facing such difficulties, Mr Osbourne said. |
| Whitehall sources have told the BBC that any talks with the van firm would be conducted by junior ministers and officials at the Department for Business, Enterprise and Regulatory Reform. | Whitehall sources have told the BBC that any talks with the van firm would be conducted by junior ministers and officials at the Department for Business, Enterprise and Regulatory Reform. |
| Gordon Brown reacts to LDV's plight | Gordon Brown reacts to LDV's plight |
| But it is understood that ultimate responsibility over any scheme would still rest with Lord Mandelson. | But it is understood that ultimate responsibility over any scheme would still rest with Lord Mandelson. |
| Prime Minister Gordon Brown said the government had adopted measures to help firms, whatever their size. | Prime Minister Gordon Brown said the government had adopted measures to help firms, whatever their size. |
| He said steps included giving loans to small businesses, providing medium firms with working capital and larger firms with a facility from the Bank of England. | He said steps included giving loans to small businesses, providing medium firms with working capital and larger firms with a facility from the Bank of England. |
| The government has already announced measures to support the car industry including guarantees to unlock loans of up to £1.3bn from the European Investment Bank, as well as a further £1bn in UK government loans, to fund investment in greener vehicles. | The government has already announced measures to support the car industry including guarantees to unlock loans of up to £1.3bn from the European Investment Bank, as well as a further £1bn in UK government loans, to fund investment in greener vehicles. |
| Sign of faith' | Sign of faith' |
| The management buy-out of the firm aims to make it into the first big producer of electric vans in the UK. | The management buy-out of the firm aims to make it into the first big producer of electric vans in the UK. |
| "We are almost ready to go, but we need the government to do its bit," added Mr Eberhardson. | "We are almost ready to go, but we need the government to do its bit," added Mr Eberhardson. |
| "I am confident they understand the potential to secure this exciting green technology in Britain - and the need to move very quickly." | "I am confident they understand the potential to secure this exciting green technology in Britain - and the need to move very quickly." |
| A company spokesman added: "Short-term bridging support for this management buy-out from the government will secure its future and the future of hundreds of jobs." | A company spokesman added: "Short-term bridging support for this management buy-out from the government will secure its future and the future of hundreds of jobs." |
| Liam Byrne, Labour MP for Birmingham Hodge Hill, said: "LDV's plans for a management buy-out are an excellent sign of faith by the... leaders in the company. | Liam Byrne, Labour MP for Birmingham Hodge Hill, said: "LDV's plans for a management buy-out are an excellent sign of faith by the... leaders in the company. |
| "For some weeks now I have been working closely with the company as they have shaped their ambitious plans for winning a big share of the 'green van' market." | "For some weeks now I have been working closely with the company as they have shaped their ambitious plans for winning a big share of the 'green van' market." |
| LDV was bought by the Gaz group two years ago. | LDV was bought by the Gaz group two years ago. |
| In November it announced 95 jobs were to be axed at its Washwood Heath factory in Birmingham. | In November it announced 95 jobs were to be axed at its Washwood Heath factory in Birmingham. |
| Do you work for LDV? What is your reaction to this news? Send your comment to the BBC using the form below: | Do you work for LDV? What is your reaction to this news? Send your comment to the BBC using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |