RIP LDV

[Matt]

Birmingham van maker LDV entered administration on Monday after a rescue bid collapsed and the government refused requests for emergency aid.

Around 4,000 job losses are expected as a result, 850 at LDV and another 3,000 at dealers and suppliers.

The administration illustrates the damage done by the recession to manufacturing in the Midlands and Northern England. LDV’s sales collapsed in November, after the credit crunch triggered a severe downturn in the construction industry.

The van maker’s plant was the last large factory still operating in Washwood Heath, a deprived district of Birmingham.

LDV fought a prolonged battle to receive a £20-£30m loan from the UK government, which remained unconvinced that the loss-making company had a commercial future. The relationship was complicated by the fact that business minister Lord Mandelson last summer attended a party on the yacht of LDV’s owner, Russian oligarch Oleg Deripaska.

This meant that a big bail-out could have triggered accusations of cronyism. LDV executives claimed that ministers never seriously examined their plans to transform LDV into a manufacturer of environment-friendly vans.

The government eventually provided a £5m loan to support the company while Gaz, a holding company of Mr Deripaska, negotiated the sale of LDV to WestStar. However the Malaysian bidder was unable to raise the necessary funds, triggering a request for a £45m loan that was turned down by government.

By allowing LDV to fail without a significant government bail-out, Lord Mandelson has stood by his policy of “industrial activism”, in which aid is only provided to businesses seen as having strategic importance to the UK.

Sad day for LDV, Sad day for Manufacturing.

I heard last week foreign companies are interested and buying, if it goes through the manufacturing is likely to be took abroad.

Nice to see the government helped them out though...just keep spending our money don't you worry!

[Samilktray]

Prefer Transits.

[Matt]

Prefer Transits.

VW Transporters piss over all vans.

But it's not really the point of this thread.

[Guest]

Nice to see the government helped them out though...just keep spending our money don't you worry!

To be honest Matt, I want my taxes to be spent on the NHS, on providing adequate services for the elderly and those in need, and on education, not on bailing out businesses who cannot compete in the current economic climate.

[Granno]

Gutted about this news. So sorry for the people affected.

[Matt]

To be honest Matt, I want my taxes to be spent on the NHS, on providing adequate services for the elderly and those in need, and on education, not on bailing out businesses who cannot compete in the current economic climate.

They haven't exactly excelled at that either though have they.

I agree with all you say about apart from bailing out businesses - How are countries to survive without industry and manufacture?

[Guest Bilo]

To be honest Matt, I want my taxes to be spent on the NHS, on providing adequate services for the elderly and those in need, and on education, not on bailing out businesses who cannot compete in the current economic climate.

Agree with this. The examples you gave are in the public domain and should be funded by public money. Sorry for those who have lost their jobs, but LDV haven't failed as a company because their products are the best.

[Guest]

They haven't exactly excelled at that either though have they.

I agree with all you say about apart from bailing out businesses - How are countries to survive without industry and manufacture?

Industry and manufacture are private businesses. They have to provide the products that the people want at a price they are prepared to pay, to put it simply.

On the other hand, if the public are that bothered about British businesses going bust, then they should start buying British.

[Matt]

Industry and manufacture are private businesses. They have to provide the products that the people want at a price they are prepared to pay, to put it simply.

On the other hand, if the public are that bothered about British businesses going bust, then they should start buying British.

And to an extreme extent, who is going to build, make, maintain, manufacture products for the Hospitals, Schools, Colleges, Universities that you want the Government to pump money into? e.t.c.

I'm not saying they are not worthy and don't deserve the money, they do and I understand your points, but it still poses the points I make.

Nothing really to do with LDV, but still it is on the subject of the death or at least demise of British industry and manufacture.

[davieG]

When all said and done it's just a company, ok jobs will be lost but they aren't the first and they wont be the last.

Our car, lorry and bus building industry along with much of our manufacturing disappeared a long while ago, we may still be one of the bigger car producers but we're dropping down the list fast and all the profits disappear into the global mist anyway.

[Guest]

And to an extreme extent, who is going to build, make, maintain, manufacture products for the Hospitals, Schools, Colleges, Universities that you want the Government to pump money into? e.t.c.

I'm not saying they are not worthy and don't deserve the money, they do and I understand your points, but it still poses the points I make.

No it doesn't. The British construction industry is still significantly bigger than the motor industry. Have you not noticed that the company building the new Tigers stand has a local office (Wolvey).

Pharmaceuticals are still produced here, but companies are larger multi-nationals now. The NHS is already purchasing from abroad, and I don't doubt that other public sector areas are sourcing the most competitive products. It's a sign of the times, globalisation and all that.

[Edmund]

Nice to see the government helped them out though

Business is business. You don't see 90 per cent of the businesses which start up every year and fail being bailed out by the government.

In fact why shoud the taxpayer help at all when at the end of the day they sell to the taxpayer. In that case it would be a win win situation for the business. Either way they will take our money, directly or indirectly.

If the government help them out I hope all the taxpayers will have nice shiny vans delivered to our doors because I certainly don't want to buy a van yet my money is being spent to help them make vans without purchasing one.

[Matt]

Fair enough, valid points, just very sad for LDV, very sad for industry and manufacture imo.

It obviously won't be missed if we lose yet more jobs to other countries. It'll just mean the taxpayers are paying for people on the dole I suppose.

[Edmund]

Fair enough, valid points, just very sad for LDV, very sad for industry and manufacture imo.

It obviously won't be missed if we lose yet more jobs to other countries. It'll just mean the taxpayers are paying for people on the dole I suppose.

Don't get me wrong I have full sympathy for the workers at the company especially people who have worked most of there lives there and are probably only skilled in this field and will struggle finding a job with similar duties.

Im guessing the company directors mismanagement is to blame and every business has had to deal with the recession, some sectors more than others but maybe if they forecasted a little better then they might not be in this mess. But I haven't read the full ins and outs of the story so can't really comment on went wrong. I just feel the government shouldn't take the brunt of it.

[skinnydipper]

Could've been worse.

At least it's not MDV

[Head Honcho]

Sad day for LDV, Sad day for Manufacturing.

I heard last week foreign companies are interested and buying, if it goes through the manufacturing is likely to be took abroad.

Nice to see the government helped them out though...just keep spending our money don't you worry!

Don't the Russians own it? Why should the UK taxpayers bail them out?

[Hullfox]

Bastards owe me for an engine

[Thracian]

Another skilled workforce joins the dole queue - and I suppose that 25% of them will be accused of not wanting to work when they become part of the statistics!

And suddenly, as one mentioned, they'll be chasing all those thousands of jobs that Lise says are on offer - mostly paying peanuts an hour, when their bills are totting up like coconuts every hour.

But never mind. Ultra says we shouldn't lose faith.

[Thracian]

Industry and manufacture are private businesses. They have to provide the products that the people want at a price they are prepared to pay, to put it simply.

On the other hand, if the public are that bothered about British businesses going bust, then they should start buying British.

People's ability to buy products at any price is limited by the amount of disposable income they have. With direct and indirect taxation at obscene levels because of government irresponsibility, among other things, increasing numbers of people have very little left to spend at the end of their working week and are moving further and further into debt.

As for buying British you're right, but it is only practical if whatever you want is available in "British". And, for some of course, for sometimes shortsighted reasons, the British price has to be acceptably competitive, like for like, as well.

Achieving that is not easy given all the various difficulties and, in any case, will depend on your political view of what approach is acceptable and how effective it turns out to be in practice given that any "solution" will prompt retaliatory response.

Whatever course is chosen, if taxes and essential bills wipe out earnings for people, there's nothing left to spend on extras. And Labour seem to have ensured that there will be no change in that situation for the forseeable future. Quite the contrary. All they seem to offer is the prospect of more and more debt - a sort of do-as-we-do philosophy.

[Guest]

People's ability to buy products at any price is limited by the amount of disposable income they have. With direct and indirect taxation at obscene levels because of government irresponsibility, among other things, increasing numbers of people have very little left to spend at the end of their working week and are moving further and further into debt.

As for buying British you're right, but it is only practical if whatever you want is available in "British". And, for some of course, for sometimes shortsighted reasons, the British price has to be acceptably competitive, like for like, as well.

Achieving that is not easy given all the various difficulties and, in any case, will depend on your political view of what approach is acceptable and how effective it turns out to be in practice given that any "solution" will prompt retaliatory response.

Whatever course is chosen, if taxes and essential bills wipe out earnings for people, there's nothing left to spend on extras. And Labour seem to have ensured that there will be no change in that situation for the forseeable future. Quite the contrary. All they seem to offer is the prospect of more and more debt - a sort of do-as-we-do philosophy.

You carry on living in your nostalgic world, wallowing in nationalistic self-pity, Thrac. The rest of us have got stuff to do.

[Thracian]

You carry on living in your nostalgic world, wallowing in nationalistic self-pity, Thrac. The rest of us have got stuff to do.

But not at a prospective £5-odd an hour! As for self-pity I don't think my life could be much better. Wish I could say the same about the LDV van lot and all those in a similar position.

As for spitting out the word nationalistic, I feel no shame in believing the natives of this country should be valued and given opportunity to lead prosperous and motivated lives instead of so many being reduced to the role of second class citizens, nor do I see any reason the culture of this country and its traditions eroded or disrespected by people with plainly declared alternative agendas.

Being nationalistic does not preclude being international in any way and I very much doubt you would spit at the concept of Welsh nationalism.

[Matt]

But not at a prospective £5-odd an hour! As for self-pity I don't think my life could be much better. Wish I could say the same about the LDV van lot and all those in a similar position.

As long as the foreigners can come in and work for that, fook us.

[Zingari]

the government can't be expected to plough millions into propping up badly run manufacturing industries

it needs every penny it's got to prop up badly run banks and building societies and paying huge pensions to former useless executives

[Guest]

But not at a prospective £5-odd an hour! As for self-pity I don't think my life could be much better. Wish I could say the same about the LDV van lot and all those in a similar position.

As for spitting out the word nationalistic, I feel no shame in believing the natives of this country should be valued and given opportunity to lead prosperous and motivated lives instead of so many being reduced to the role of second class citizens, nor do I see any reason the culture of this country and its traditions eroded or disrespected by people with plainly declared alternative agendas.

Being nationalistic does not preclude being international in any way and I very much doubt you would spit at the concept of Welsh nationalism.

Whatever....

[Matt]

I know there is the point of don't believe everything you read or hear in the news yadda yadda yadda, but just heard on the news apparently it would have been better off for taxpayers money to be spent helping LDV and companies and to some extent bailing them out thus not causing so many redundancies if any (I'd have thought a certain amount would have jobs cut) than letting all these people jobs go and the taxpayers money being spent on their dole money and benefits.