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| Government to make LDV statement | |
| (20 minutes later) | |
| The government will make a statement Wednesday afternoon on the future of van maker LDV, the BBC understands. | The government will make a statement Wednesday afternoon on the future of van maker LDV, the BBC understands. |
| Also on Wednesday, moves to place LDV into administration are expected to be deferred at a court hearing. | Also on Wednesday, moves to place LDV into administration are expected to be deferred at a court hearing. |
| Malaysian firm Weststar is said to be on the verge of taking over LDV after the van maker was offered a £5m four-week loan from the government. | Malaysian firm Weststar is said to be on the verge of taking over LDV after the van maker was offered a £5m four-week loan from the government. |
| Negotiations between Weststar, LDV and UK government officials continued into Tuesday night to finalise the deal. | Negotiations between Weststar, LDV and UK government officials continued into Tuesday night to finalise the deal. |
| An announcement on LDV will be made by the Department of Business, Enterprise and Regulatory Reform and the managing director of Weststar Malaysia at 1400 BST in London. | |
| LDV had been set to go into administration on Wednesday, raising redundancy fears for 850 workers. | LDV had been set to go into administration on Wednesday, raising redundancy fears for 850 workers. |
| Thousands working at other companies could also have lost their jobs. | |
| 'Good investment' | |
| The chief executive of the Society of Motor Manufacturers and Traders, Paul Everitt, said the rescue deal was a vote of confidence in the industry. | |
| We are delighted at the government's backing for this company Tony Woodley, Unite union | |
| "I think it does signal that there are now investors out there taking a longer term view and they see the UK motor industry as being a good investment - an industry that has a strong future, particularly one that is already ahead and embracing the low carbon agenda," he said. | |
| Business minister Ian Pearson said a sale to Weststar offered a chance of keeping the factory in the UK. | Business minister Ian Pearson said a sale to Weststar offered a chance of keeping the factory in the UK. |
| Guy Jones, a spokesman for LDV, told the BBC: "This is not the end of the process but it is very good news for everybody. | Guy Jones, a spokesman for LDV, told the BBC: "This is not the end of the process but it is very good news for everybody. |
| Advertisement | Advertisement |
| Ex-LDV worker on company's problems | Ex-LDV worker on company's problems |
| "This is a significant step. This is the government getting involved, which we've asked them to do for a long time. | "This is a significant step. This is the government getting involved, which we've asked them to do for a long time. |
| "It is important to stress this is not a deal being done but they are going to provide assistance for a a deal to be completed." | "It is important to stress this is not a deal being done but they are going to provide assistance for a a deal to be completed." |
| The government has made it clear the aid is a one-off bridging loan which could not be extended. | |
| Hopeful sign | |
| A deal would bring some rare good news for the beleaguered motor industry, which has been battered by the recession. | |
| The Birmingham-based business and plant has been at a near standstill since before Christmas. | The Birmingham-based business and plant has been at a near standstill since before Christmas. |
| About 800 people are employed at LDV's Birmingham factory and about 1,200 people employed in dealerships. | About 800 people are employed at LDV's Birmingham factory and about 1,200 people employed in dealerships. |
| Mr Pearson said: "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward." | Mr Pearson said: "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward." |
| It is understood LDV and Weststar had reached a deal earlier in the week, but that it relied on the short-term UK government financing. | It is understood LDV and Weststar had reached a deal earlier in the week, but that it relied on the short-term UK government financing. |
| 'Long way to go' | 'Long way to go' |
| Following the news of the government loan, Tony Woodley, joint general secretary of trade union Unite, said they were "delighted at the government's backing for this company". | Following the news of the government loan, Tony Woodley, joint general secretary of trade union Unite, said they were "delighted at the government's backing for this company". |
| "There's a long way to go yet, but now thoughts can turn to building a serious and successful future for this company, and to getting these men and women, who have not built a vehicle in months, back to work," he said. | "There's a long way to go yet, but now thoughts can turn to building a serious and successful future for this company, and to getting these men and women, who have not built a vehicle in months, back to work," he said. |
| In February, LDV asked the government for a bridging loan because it was "literally running out of cash". | In February, LDV asked the government for a bridging loan because it was "literally running out of cash". |
| At the time the government said the taxpayer could not be expected to pay for the company's losses, but that talks with LDV were "ongoing and regular". | At the time the government said the taxpayer could not be expected to pay for the company's losses, but that talks with LDV were "ongoing and regular". |
| LDV, which was put up for sale by its Russian owner Gaz late last year, has a long-term association with Weststar making LDV commercial vehicles in Malaysia. | LDV, which was put up for sale by its Russian owner Gaz late last year, has a long-term association with Weststar making LDV commercial vehicles in Malaysia. |
| Are you affected by the issues in this story? Do you work for LDV? Send us your comments. | Are you affected by the issues in this story? Do you work for LDV? Send us your comments. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |