Business, political and union reaction to LDV blow
Jun 3 2009 by Graeme Brown, Birmingham Post
Reaction to the news that LDV was to enter administration after Weststar's rescue bid was called off has been one of widespread dismay.
Automotive expert Howard Wheeldon, senior strategist at BGC Partners, said: “As a Birmingham-born man and having known the Washwood Heath site of LDV for many a decade I am obviously saddened at the prospect of the final demise of LDV.
“I am also annoyed that the current Russian owners should have been allowed to so easily walk away from what is their responsibility and that this seriously questions why anyone should trust them as soon-to-be-partners in GM Europe.”
Liam Byrne, MP for Birmingham Hodge Hill, right, said he would be working through the night to try to save LDV.
He said: “I’m disappointed that, despite our hard-fought Government bridging loan, Weststar hasn’t yet got the finance in place to seal the deal. Administration is a setback, but I’m absolutely clear that this is by no means the end of the story. Weststar told me yesterday morning that they are still keen on doing a deal, so our fight for LDV’s future goes on.”
Jerry Blackett, chief executive of Birmingham Chamber of Commerce and Industry, said: “This is another resounding blow for the West Midlands automotive sector. LDV has an award-winning product in the Maxus, a healthy order book and the research and design experience to create vehicles like the new electric van, which was just months away from production.”
Business Minister Ian Pearson said: “We are disappointed with the news that, despite the bridging facility made available by the Government, Weststar of Malaysia has been unable to proceed with its purchase of LDV. We gave LDV a breathing space, a bridge to the future, but in the event, unfortunately, Weststar was unable to cross that bridge.”
Joe Morgan, regional secretary of the GMB union, said: “We are firmly of the view that the UK Government cannot stand aside and let these manufacturing jobs go to the wall.”
Lindsay Hoyle MP, a member of the Business Select Committee, said: “We need a more hands-on approach from the government to make sure that deals like this are successful. We have seen the experience in Germany where direct dealings over General Motors are saving jobs.”
Unite union national officer Dave Osborne said: “We understand that Weststar is now looking to the Government to help underwrite its application to the banks for finance. We urge the Government, through Berr (Department for Business, Enterprise & Regulatory Reform) to support this application and do all that it can to help Weststar complete its purchase quickly so a future can be secured for this plant and its workforce.”
Shadow business minister Mark Prisk said: “We need to know what has gone wrong. In particular, ministers must say how much taxpayers’ money has been lent and whether all of it will be repaid.”
Simon Topman, chairman of West Midlands Chambers of Commerce, said: “Many suppliers have already taken a hit in that LDV has not produced any vehicles in 2009. Some suppliers will still be owed money.
“In the region we will be looking to support any last-ditch effort to save LDV.”
Regional Minister Ian Austin said: “We have worked hard to get the Weststar bridging money and it is a great shame the company has not yet got the finance together. I am thinking of the workforce, their families and associated businesses and am working alongside Advantage West Midlands and Jobcentre Plus to ensure the necessary support is provided.”
