LDV offers to pay its bills in vans

Mar 15 2009 By Jon Griffin

CASH-strapped Midland van maker LDV is offering to pay off its debts – with vans.

Bosses at the crisis hit Birmingham firm, which owes thousands of pounds to dealers, are hoping their used vehicles will be accepted as payment.

The firm’s flagship Maxus model, which is priced at just under £5,000, is among those being offered as payment to creditors.

The company supplies vehicles to 132 dealerships across the country.

But no vans have been produced at the Washwood Heath plant for three months.

The extraordinary scheme has been running for two months

The vans for cash deal is the latest in a raft of measures employed by the firm to keep it going.

Around 7,000 jobs are at risk at the ailing plant.

And workers have already accepted a 10 per cent pay cut.

If the firm did go bust, thousands more could be facing the dole queue as the knock-on effects would hit suppliers.

The firm is pleading with the Government to give them a loan to keep the business going.