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Administration deadline for LDV Administration deadline for LDV
(about 1 hour later)
Remaining staff at struggling van maker LDV have been sent home, after the firm applied to enter administration.Remaining staff at struggling van maker LDV have been sent home, after the firm applied to enter administration.
About 800 people are employed at its Birmingham factory - though most have not been working, with production halted since December last year.About 800 people are employed at its Birmingham factory - though most have not been working, with production halted since December last year.
Employees have been paid up to the end of last week, it said, but the firm could not confirm any further payments.Employees have been paid up to the end of last week, it said, but the firm could not confirm any further payments.
LDV said it would continue to look for funding until 6 May when it is due to formally go into administrationLDV said it would continue to look for funding until 6 May when it is due to formally go into administration
There are about 1,200 people employed in dealerships, and LDV estimates that "several thousand" staff are employed by its suppliers.There are about 1,200 people employed in dealerships, and LDV estimates that "several thousand" staff are employed by its suppliers.
The company is still working with a Malaysian investor, Westar, which LDV says wants to keep production in Birmingham. But it is thought unlikely to be able to do a deal before next week's deadline.
The leader of the Unite union, Tony Woodley, called on the government to give LDV £4m in emergency aid to stave off the immediate threat of administration and give it time to reach an agreement with Westar.
"With so many skilled jobs at risk and with a genuine possibility of a buyer, if this company goes to the wall for the want of a relatively small amount money, then it would be criminal," Mr Woodley said.
'Exceptional conditions''Exceptional conditions'
The firm has suffered from the broader decline in demand for commercial vehicles in the UK with registration of new LDV vans down by 73% in March from a year previously, according to the SMMT.The firm has suffered from the broader decline in demand for commercial vehicles in the UK with registration of new LDV vans down by 73% in March from a year previously, according to the SMMT.
Anthony Davis, 50, has worked at LDV for 11 years For most of the past five months I've been at home waiting for the call to get us back to work.Anthony Davis, 50, has worked at LDV for 11 years For most of the past five months I've been at home waiting for the call to get us back to work.
I was lucky and had built up some overtime, so was paid in full for the first eight weeks or so, and then have been paid for 19 hours a week, but some the lads have got nothing. I was lucky and had built up some overtime, so was paid in full for the first eight weeks or so, and then have been paid for 19 hours a week, but some of the lads have got nothing.
I don't think many of us blame the management. It's the government who could help. If they don't then we'll all lose our jobs and that will be dole they'll have to pay us and the suppliers.I don't think many of us blame the management. It's the government who could help. If they don't then we'll all lose our jobs and that will be dole they'll have to pay us and the suppliers.
Compared with the bail-outs the banks are getting, it would not take a lot of money to save us. If not, this area loses another industry and that's going to be devastating.Compared with the bail-outs the banks are getting, it would not take a lot of money to save us. If not, this area loses another industry and that's going to be devastating.
However, it has had long-running problems and has made a loss for the last four years.However, it has had long-running problems and has made a loss for the last four years.
LDV said that it had been relying on the goodwill of suppliers to stay afloat, but that "the actions of a small number of suppliers" had caused the firm's position to reach a point where it had "no alternative" other than to apply for administration.LDV said that it had been relying on the goodwill of suppliers to stay afloat, but that "the actions of a small number of suppliers" had caused the firm's position to reach a point where it had "no alternative" other than to apply for administration.
"During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely," chief executive Evgeniy Vereshchagin said in a letter to staff."During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely," chief executive Evgeniy Vereshchagin said in a letter to staff.
'Worrying development''Worrying development'
Plans for the future of the business have included a management buy-out, with proposals to begin making electric vans from the end of the year.Plans for the future of the business have included a management buy-out, with proposals to begin making electric vans from the end of the year.
The firm has held talks with UK government ministers over possible government support for the buy-out, and a bridging loan enable it to secure funding from the European Investment Bank.The firm has held talks with UK government ministers over possible government support for the buy-out, and a bridging loan enable it to secure funding from the European Investment Bank.
LDV TIMELINE November 15: Announces 10% cut in workforce and implements extended holiday January: Applies for support with the European Investment Bank under its package for green vehicle industryJanuary 14: LDV announces it is to extend Christmas break further and requests dialogue with governmentJanuary-March: Discussions with UK government about support for management buyoutMarch: Buy-out plans presented to staff who vote to accept 10% pay cut in support of itMarch 31: Foreign investor meets UK government, which maintains that LDV owner Gaz or a foreign investor must support the company. April 28: LDV applies to enter administrationLDV TIMELINE November 15: Announces 10% cut in workforce and implements extended holiday January: Applies for support with the European Investment Bank under its package for green vehicle industryJanuary 14: LDV announces it is to extend Christmas break further and requests dialogue with governmentJanuary-March: Discussions with UK government about support for management buyoutMarch: Buy-out plans presented to staff who vote to accept 10% pay cut in support of itMarch 31: Foreign investor meets UK government, which maintains that LDV owner Gaz or a foreign investor must support the company. April 28: LDV applies to enter administration
But ministers suggested that the firm should focus on getting more finance from its Russian-owner, Gaz, or from elsewhere. Asked about the situation in the House of Commons, Prime Minister Gordon Brown said: "We have tried to be of help to them."
The application for administration was "clearly a worrying development for the company and its employees", said a spokesman for the business department, BERR. "We have said that there is a range of government support available if they have a business model for moving forward that we can work with and be able to support."
"We have made it clear to potential investors that, once the company is on a sound footing, it would be eligible to apply for a range of government support, but the first responsibility for putting the company on a sound footing rests with the current owner and a potential investor." But he reiterated that the responsibility for ensuring the firm was on a sound financial footing lay with its Russian owner Gaz and potential investors.
Malaysian investor, Westar, had been interested in the company - but it is now thought unlikely to invest.
Last month, Erik Eberhardson, the chairman of LDV's Russian owner Gaz, said he believed that LDV could be saved and that a management buyout was the best option.Last month, Erik Eberhardson, the chairman of LDV's Russian owner Gaz, said he believed that LDV could be saved and that a management buyout was the best option.
The cancellation of the 2010 British International motor show and a record drop in UK car production are the latest signs of trouble for a sector that has experienced tough times for months.The cancellation of the 2010 British International motor show and a record drop in UK car production are the latest signs of trouble for a sector that has experienced tough times for months.
Do you work for LDV? How have you been affected by the firm's problems? Send us your comments and experiences using the form below.Do you work for LDV? How have you been affected by the firm's problems? Send us your comments and experiences using the form below.
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