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Threat to LDV from huge Daewoo debt

Daewoo Motor's massive debts are putting a question mark over LDV's plans to quadruple production through a £450m joint venture.

The Birmingham van manufacturer is relying on a range of panel vans to be launched from late next year and its future is said to depend on the venture, which would more than double its workforce of 1,450 and raise output from 20,000 to up to 80,000 vans a year.

Daewoo Motor's creditors, which is trying to operate despite debts of £10bn, have invited General Motors, Ford, DaimlerChrysler and Fiat to bid for the company.

LDV lacked the financial resources to fund replacements for its current 200 and 400 vans.

Daewoo Motor took a 50% stake and invested £25m as part of the venture to develop the vans and produce them at LDV's Birmingham plant and Daewoo's commercial vehicles subsidiary in Poland.

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