The investment package, subject to shareholder approval, will enable LDV to complete the development of its new Daewoo-designed range of light commercial vehicles, install a new manufacturing facility at its Washwood Heath site in Birmingham and launch the new range of vehicles in 2004.
Earlier this year the company announced it had secured the intellectual property rights, from Daewoo, for the manufacture and global distribution of a new range of light commercial vehicles. More recently LDV acquired tooling, valued at £125 million, enabling the product to be introduced in 2004.
LDV's Chief Executive, Allan Amey said: “This is the best Christmas present LDV could wish for and I am absolutely delighted for our workforce, our suppliers and LDV's dealer network. It is also a massive boost for West Midlands manufacturing and the UK automotive industry. With this financial restructuring package fully in place LDV can now move forward, with confidence, to deliver its long-term strategic plan.”
LDV is currently holding discussions with potential distribution partners for the new van range.