Mandy dragged into row over £30m bail-out

[Broxi51]

Mandy dragged into row over £30m bail-out for van firm owned by Russian oligarch friend.

Plea: Van firm LDV has asked ministers for a bridging loan of up to £30million

http://www.dailymail.co.uk/news/article ... riend.html

Lord Mandelson's aides today said he has ruled himself out of making any decision to bail out a UK van-maker owned by his friend Oleg Deripaska.
However, the Business Secretary faces fresh controversy over his links to the Russian oligarch, whose LDV firm is seeking a bridging loan of up to £30 million.
The Business Department is in talks over a management buy-out of LDV to turn it into a manufacturer of "green" electric vans.


More than 6,000 jobs are at risk if LDV collapses, the outgoing chairman of its parent company GAZ, Erik Eberhardson, warned today.
He told BBC Radio 4's Today programme: "Unfortunately since the company is not producing, it is not making enough revenue to cover its costs.
"The company is literally running out of cash as we speak."
He confirmed LDV is seeking a bridging loan from the Government of between £20 million and £30 million.
But despite the importance of negotiations, Lord Mandelson - who enjoyed lavish hospitality on Mr Deripaska's £60 million yacht moored off Corfu last summer - is said not to be taking part.
"He would not be involved in any decision that would ever have to be taken about LDV," said the Business Secretary's spokeswoman. "It would go to another minister."


Such arrangements will insulate Lord Mandelson from accusations he could have been swayed to support LDV because of his friendship with Mr Deripaska.
However, they will also raise questions over whether the peer has allowed his love of the high life to restrict his ability to carry out his job as European Trade Commissioner and now Business Secretary - a claim he refutes.
Liam Byrne, Labour MP for Birmingham Hodge Hill, said he has spoken to ministers and senior officials at the Department for Business, Enterprise and Regulatory Reform about LDV's plight.
But this morning he refused to say if he had discussed the firm with Lord Mandelson.
LDV stopped production at its Birmingham factory on 12 December, after the global downturn hit sales.
Russian giant GAZ has invested tens of millions of pounds into the firm in recent years, leading to the creation of 200 new jobs.
The plant, in the Washwood Heath district of Birmingham, employs 850 workers and has a dealer network employing a further 1,200.
It also supports more than 5,000 jobs in supply companies.

LDV says a management buy-out aimed at transforming the manufacturer into Europe's first "green" van firm is nearing completion.
The plan, led by Mr Eberhardson, is said to be at an advanced stage with prototypes of low-carbon vans already being trialled, and strong prospects of support from the European Investment Bank.
A spokesman for LDV said: " Shortterm bridging support for this management buy-out from the Government will secure its future and the future of hundreds of jobs."
However, the Government knows it faces "hard choices" in the car and van industry and is unlikely to want to fund past losses of any company.
A spokesman for the Business Department said: "We have provided considerable support to LDV in recent years and continue to offer them help including assistance with their application for funding from the European Investment Bank."

[DGP1]

I thought those LDV vans were crap anyway, you can buy a van anywhere so why should LDV be saved and where would you draw the line.

[Stormproof]

My 1st thought when I heard this story on the radio this morning was, 'at last, we won't have to drive crap vehicles anymore', trouble is we won't be driving them anyway when all the convey duties go and we all end up paired in a small van or even worse a Smart car.

[heapsy]

My neighbour, a German, (actually she's a Hamburger, yes yes I know, get the jokes in now if you will) drives one of these. They just don't look big enough to carry more than 2 peeps and about 2 bags, so I've no idea how we would cope for delivery.

[BELIAL]

My neighbour, a German, (actually she's a Hamburger, yes yes I know, get the jokes in now if you will) drives one of these. They just don't look big enough to carry more than 2 peeps and about 2 bags, so I've no idea how we would cope for delivery.

Ideal for the Buddy system then. Don't panic Oleg , I bet every office will soon have some super new green vans

[brothermagrew]

My neighbour, a German, (actually she's a Hamburger, yes yes I know, get the jokes in now if you will) drives one of these. They just don't look big enough to carry more than 2 peeps and about 2 bags, so I've no idea how we would cope for delivery.

Cmon brother heapsy I think you have got your sexes mixed up The male citizens in Hamburg are called Hamburger in German, and a female citizen Hamburgerin.

[not me]

http://www.mirror.co.uk/news/top-storie ... -21212167/" onclick="window.open(this.href);return false;

Crisis-hit van maker LDV last night warned it was less than 24 hours from shutting down.

The Russian-owned firm said that without Government cash it would not survive the week. Bosses want up to £5million to "keep the lights on" while they work on eco-friendly new vans.

Unions say 6,000 jobs are at risk - 900 at the Birmingham factory, the rest at suppliers.

LDV's Guy Jones said: "We need a significant development this week to keep the plant open." A spokesman for union Unite said: "They need a few million to keep going while they put together a bid for the green van model. They just need to keep the lights on."

Last night talks were taking place between LDV and Lord Mandelson's Department for Business and Enterprise.

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The Mirror has learned much of the money is needed to cover an estimated £1million tax bill.

Ministers recently rejected the firm's call for a £30million loan, saying Russian owner Gaz should stump up. The money would ensure the company survives until a management buy-out by Gaz chairman Erik Eberhardson who wants to move into eco-friendly green vehicles.

But the Government fears any rescue could see production moved overseas.

Ldv was founded in 1987 after a merger of Dutch DAF Trucks and the UK's Leyland Trucks.

[Puppetmaster]

My Heart feels for all the guys who could loose their jobs here,and the Gov must do something to help all these pepole something real not words.
However to save a company that makes crap products,unreliable and expensive to maintain and causes operational problems due to lack of reliability is a diffrent matter.

Can you imaginge if LDVS were AMBULANCES !

when I hink of LDV i think of the old Ladas a lot of similaritys including Russian ownership.

LOTS OF LADA JOKES ANY LDVS JOKES ?

[heapsy]

I don't know why the government in the UK is not following that of Germany. Over there the government are paying to subsidise the workers wages, when they are put on shorter working weeks. This may sound daft but think about it. It keeps people paying tax into the system, and if they lost the skills of some of those people, they could be lost forever. The tories did just that in the 80's and 90's when all they were concerned about was lowering wages in this country by hammering the unions and closing down the mines. This had a devasting effect as many never returned to the trade that they had always known. I myself work with someone who is a skilled man. He does still do that job, cash in hand to earn extra. However, he joined the Royal Mail because he could not afford to be layed off 3 months of the year, even though he earned good money when he did work.

[andy2007]

Why would the decision for Mandy to have no part in the decisions, insulate him?
Does anyone REALLY think that he won't try to influence the other Minister, who gets to make the decision?
Does ANYONE trust Mandy?
I know I don't!