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The van maker LDV is waiting for word from the government on whether it has secured a £5m bridging loan that would enable investors to buy into the company and could save thousands of jobs.

Although LDV and Citroen van leasing have been on the up recently, production at LDV has been put on hold since December last year as a result of reduced demand in the new van market. In attempts to reduce overheads, workers at LDV recently agreed to take a pay cut of 10% and reduce their working week to 3 days. When they first found themselves in difficulties they approached the government looking for £30million. This was turned down by the government but as the situation at LDV has got worse, they have reduced their request.

Around 800 jobs at LDV could be saved and more than 6,000 people along the supply chain could also be secured if the loan is given. A number of investors from overseas are apparently looking to put money into the company if the government take action. These include one of the bidders who previously failed to secure Jaguar Land Rover, but also Mahindra and Mahindra, an Indian group who were in the running to purchase JLR and also a van leasing company a year ago but was eventually beaten by rival Asian conglomerate Tata.

The company have submitted all of their accounts and business plans to the government, which include their new concept of a ‘green’ van. All the elements of the data will be looked into well by the government but the bosses at LDV seem optimistic. Erik Eberhardson, the chairman of LDV’s Russian owner Gaz, has already stated he is convinced the firm can be saved and a spokesman for LDV recently announced “This isn’t dead in the water. BERR has agreed to investigate all options, and the MBO team believe they have the best plan.”

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