HOWZAT

In a statement today LDV said: "The directors of LDV Group have been forced to reapply for administration to protect the assets of the business.

"This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available."

LDV, formerly Leyland DAF Vans, has been owned by Gaz since 2006.

Gaz is owned by Oleg Deripaska, the Russian oligarch, who is also an industrial partner with Magna International and Sberbank, the new owners of GM Europe.

He has said that he hopes to produce GM cars for the Russian market.

Lord Mandelson, the Business Secretary, was a guest of Mr Deripaska last summer before his recall to the Government.

He officially removed himself from the talks on LDV to avoid suggestions of a conflict of interest and left Ian Pearson, the Economics and Business Minister, in charge.

In a statement, Mr Pearson said: "We are disappointed with the news that, despite the bridging facility made available ... Weststar has been unable to proceed with its purchase."

"This is clearly a worrying time for the workforce and we are ready to offer support to the workers through Advantage West Midlands and the Jobcentre Rapid Response Team."

A spokesman for LDV said that the Government seemed to have "jumped very quickly" to talk of Jobcentres when it had yet to release the bulk of its promised loan.

Joe Morgan, regional secretary of the GMB union, said: "This is really bad, unexpected news. GMB will be seeking immediate talks with the management of LDV, the Government and Weststar to see what the options for the future are."

"We are firmly of the view that the UK Government cannot stand aside and let these manufacturing jobs go to the wall."

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