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LDV applies for administration 3 May 2009

Around 800 people are employed at the Birmingham factory, but most have not worked  since production was halted in December 2008.   The remaining workers were sent home this morning.

The company has a court date of 6 May for an administration hearing.

Meanwhile, LDV’s Russian owner, billionaire Oleg Deripaska, has emerged as a potential investor in General Motors Europe, which makes Vauxhall cars in the UK.

According to officials in the German government, Deripaska, who made his fortune out of aluminium in Russia, is working with the Canadian and Austrian car parts company Magna to buy a stake of up to 25 per cent in GME.

GME has said it will fold unless it gets a £3.3billion loan. It is in talks with a number of interested parties, including Magna, Fiat and SAIC, the Chinese car maker, to sell a stake in the company.

There have also been talks between the UK Government and Vauxhall about a loan guarantee to keep open Vauxhall's two British plants, in Luton and Ellesmere Port, Cheshire.
The Government is interested in keeping the modern Ellesmere Port site open as it wants it to become the centre of mass electric car manufacturing.

The Russian has a long-standing relationship with Magna. In 2007, Deripaska bought an 18 per cent stake for £1.5billion, which he sold on for £912million in October last year. At the time, both sides said they would work together on other car projects.

 

 

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