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LDV will go under "within a week" without Government help

The man behind the management buyout of vanmaker LDV has said without Government help it will go under within a week.

Erik Eberhardson made the comment during an interview on Sky News yesterday with business presenter Jeff Randall.

Eberhardson said LDV needed a temporary loan to enable it to roll out its new electric van.

He told Sky News: "We have already done our homework and know what vehicles the Government want to support, but we have been terribly bad at telling the world about it.

 

"We don't talk about keeping LDV alive, we are talking about the manufacturing of electric vehicles - so £30m approximately.

"The bulk of the investment, £500m, has already been made to the development of multi-propulsion systems and the vehicle."

LDV is owned by Russian company GAZ who has said it will not provide any cash for the van maker.

However Eberhardson said the firm was potentially in good shape and said it was not about keeping LDV alive, but about the manufacture of electric vehicles.

He agreed with the Government that hybrid and electric vehicles are the future technologies of the motoring industries which puts LDV, who employs 850 people, in a good position to make money.

Despite the fact LDV suspended production in December, Eberhardson remained confident the company would survive and although difficult choices had to be made, it was going in the right direction.

The Government has made £2.3 billion available for companies that make "green" vehicles and their suppliers, although these funds have not yet trickled through to the industry. 

Meanwhile Jaguar Land Rover is receiving a Government grant of £27m to help it develop a new green Range Rover following a meeting of motor industry representatives in London.
 

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