UK government insists responsibility for LDV's losses lies with owner Gaz
24 February 2009

Van maker LDV has failed to secure an emergency loan from the UK government.

The struggling Midlands manufacturer, which is owned by car maker Gaz and ultimately by Russian oligarch Oleg Deripaska, had requested a £30m funding package to enable a management buy-out led by current Gaz chairman Erik Eberhardson.

Because of public ties between business secretary Lord Mandelson and Deripaska, the decision on the loan was made by the Ian Pearson, the trade minister.

"It must be up to the parent company, Gaz, to put up the funding to secure the business's future,' said Pearson. "The British taxpayer cannot be expected to pay for the company's losses."

The Department of Trade issued the following statement: "We have written to LDV and reiterated our view that the primary responsibility for supporting LDV and the management buy-out rests with Gaz, but in the absence of such support from Gaz, we cannot see a case for further assistance from the Government."

A spokesman said that the company has still not repaid a previous £24 million loan.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Range Rover Sport SVR
    First Drive
    22 March 2018
    More power and an intoxicating soundtrack have breathed new life into our love affair with the biggest, baddest Range Rover Sport variant
  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim
  • Nissan Leaf Tekna
    The is the new Nissan Leaf
    First Drive
    21 March 2018
    The new version of the world's best-selling electric car gains a bigger battery and more power. How does it compare to rivals such as the Volkswagen e-Golf?
  • Range Rover p400e
    First Drive
    20 March 2018
    The original luxury SUV is now available as a plug-in hybrid, promising lower emissions and the capacity for silent electric motoring
  • BMW i3s
    Car review
    20 March 2018
    Revised hatchback sets out its range-extended electric stall in a new, sportier tune