| As the country slides deeper into a recession, many | | | | Gaz, the Russian automotive group that is part of Mr |
| are looking at different ways in which they can scale | | | | Deripaska's Basic Element investment empire, pulled |
| back, meaning that many so called luxury items are | | | | out of supporting the company. |
| being passed over. With every bill counting, it seems | | | | In addition to owing money to many creditors, LDV is |
| that van drivers are choosing to stick with their old | | | | facing a £1 million national insurance bill for it's |
| models rather than upgrade to a newer model. Van | | | | 500 employees. However the company's pleas for |
| insurance is also high and with premiums higher for | | | | help from the government have gone unheeded as |
| newer vehicles, there is a double benefit in sticking | | | | ministers recommended that LDV turns to Gaz for |
| with an older van rather than upgrading. | | | | the support it needs. It seems that the general public |
| Another aspect to consider is the fact that many | | | | is lacking in enthusiasm for the company's plight, with |
| van owners who use their van for business find that | | | | many believing that LDV's downfall was caused by a |
| they are getting less work, and as a consequence | | | | poor business plan and below par vans. |
| choose to branch out into a new line of business. All | | | | Mr McPaul, from Shrewsbury said: "The problem with |
| of these factors mean that the van market has | | | | LDV is the Van is a seven year old design developed |
| been hit heavily, with vanmaker LDV, owned by the | | | | initially by a korean partner, it has taken 4 years to |
| Russian billionaire Oleg Deripaska struggling to pay | | | | get it to the market. It was dated when it came to |
| their debts. The company is under so much pressure | | | | the market. If Ford is struggling with the transit, |
| that they are offering their creditors vans as an | | | | which is the best van on the market at present |
| alternative to cash payments which they do not | | | | what, chance has LDV." |
| have the funds for. | | | | Meanwhile, Steve Chapman from Liverpool actively |
| The company has appealed to the government to | | | | welcomes the effect the current climate has had on |
| bail them out but to no avail, so are attempting to | | | | businesses, saying: |
| appease their many creditors with part payment | | | | "Quite frankly, I think there will be, and should be a |
| made up of brand new vans. A spokesman for LDV | | | | lot more of this, traditional way of trading. Maybe the |
| said that it was standard practice to offer | | | | credit crunch and low interest rates will make people |
| alternatives where cash wasn't available, saying using | | | | realise that money has its uses but its not the be all |
| vans is "accountancy practice where we have some | | | | and end all and that we should live simply and trade |
| money owed". LDV has been putting increasing | | | | goods and services directly. |
| pressure on the government to bail them out after | | | | |