LDV applies for administration after rescue attempts fail

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Struggling Birmingham-based van maker LDV has been placed in administration today, threatening thousands of UK jobs.   Owned by the Russian energy group GAZ, LDV employs 850 workers at its Washwood Heath site, but more than 4,000 other jobs will be at risk across its supply network and its 1,200 dealerships and if the company is liquidated.   The Malaysian vehicle importer and contract manufacturer Weststar had been trying to raise the funds to buy LDV, but announced last week that it had not been able to do so, although it would not surprise many industry observers if Weststar made an offer this week for LDVÔÇÖs best assets.   LDV already has a long-term partnership with Weststar after signing an alliance two years ago to make LDV commercial vehicles in Malaysia.   The UK Government has already provided a four-week bridging loan of ┬ú5 million to allow Weststar to complete the deal.   When Weststar appealed for another ┬ú45 million last week, however, ministers turned them down, as the Government has said repeatedly that any further funding for LDV should come from GAZ, Russia's second largest car producer, which has itself been hit by a slump in domestic sales.   LDV managers issued a final warning to the Government on Friday in a last ditch attempt to save the company.   To add to the sense of tragic farce emanating from Westminster at present, however, a delegation of workers sent to press the case for a ┬ú60 million loan came home empty handed because the Cabinet reshuffle meant no ministers were available to meet them.   LDV warned that the cost to the Treasury of closing the plant could reach ┬ú53 million in unemployment benefits and lost taxes in the first year.   The company calculated that the economy would lose more than ┬ú200 million in total wages, purchases and export revenue.   No vans have been built at LDV since mid-December after a collapse in demand.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *