Russian giant may acquire LDV
LDV may soon have a new owner in the shape of Russian car, van and truck manufacturer GAZ, potentially giving it much needed longer-term stability. An agreement has yet to be reached, but preliminary talks are now underway with a decision expected at the end of July.
Claiming to be the world’s seventh largest van maker, GAZ builds 140,000 light commercials annually and exports its products to more than 30 countries worldwide. Though virtually unknown in the West, with sales totalling £1.9bn in 2005 it is Russia’s second largest automotive company, and part of the RusProm Avto group owned by Russian billionaire Oleg Deripaska
Acquiring LDV would give GAZ access to a major EU market and a modern light commercial in the shape of the Maxus that could supplement its existing GAZelle model. It would also provide it with closer links to Western automotive technology.
If a deal is signed it won’t lead to LDV’s Midland factory closing and assembly being shifted to Russia, despite the lower cost of labour, promises GAZ president, Erik Eberhardson.
"We will not ‘lift and shift’ the operation," he says. "Manufacturing will continue in Birmingham."
Sun Europe, LDV’s current owner, took control of the company when it went into administration at the end of last year. It’s an affiliate of US private equity group Sun Capital Partners.
(this article was taken from whatvan.co.uk)
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