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LDV administration confirmed

Date: 08 June 2009

LDV built the Maxus van until the end of last year

LDV has entered administration following last week's collapse of a buyout by Malaysian firm Weststar, which was unable to raise the necessary financing.

The move puts the company's 850 staff at immediate risk, with a total of 4000 jobs under threat in the supply chain.

Over the last three years fleets have registered almost 14,000 LDV models, with another 312 so far in 2009 despite LDV's factory laying dormant since before Christmas. It's unclear what will happen the servicing network at this stage.

A "final statement" from the LDV management read as follows:

"Over the past year, the new management team at LDV have restructured the business for profitability, creating an exciting future with the potential to be the first manufacturer able to offer both electric and diesel light commercial vehicles. This is a plan that clearly supports the vision of the British government for the industry.

The management team have worked exceptionally hard to deliver this plan, but despite every effort made around the globe, have been unable to obtain the required funding from the banking system. Like much of industry, it is access to working capital that remains an issue which will go on to cause further job losses if not addressed.

We now hope that any possible buyers recognise the potential of the investment already made at LDV and what has been achieved in the last year to transform the future profitability of the business. There is still the opportunity of a bright future for LDV, however now the management team must now hand control of the business over to the administrators and hope this can be achieved in this process."

LDV's management last week made an unsuccessful appeal to the Government for a £60m loan to keep the company afloat.

The firm was pinning its survival hopes on the development of an electric version of its Maxus, which would have been the first mass-produced electric LCV to market.