LDV denied government loan

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Struggling van maker LDV has been told the government is not prepared to give it a ┬ú30 million bail out. The company asked earlier today for bridging loans to help secure its future and save jobs, while it presses ahead with management buy-out plans. "The British taxpayer cannot be expected to pay for the company's losses," said a spokesman for Gordon Brown.   Russian parent firm Gaz, which acquired LDV two years ago, said the van-maker was running out of cash and could not cover its costs, putting thousands of jobs at risk, including 900 in Birmingham.   LDV has made a loss for the last four years and suspended production in December. Erik Eberhardson, the outgoing Gaz chairman, hopes to lead the management buy-out, but says the companyÔÇÖs cash situation is critical.   "Unfortunately since the company [LDV] is not producing, it is not making enough revenue to cover its costs and the company is literally running out of cash right as we speak," he said.   A spokesman for Gordon Brown confirmed that talks with the firm were being conducted by Business Minister Ian Pearson.   The management buy-out of LDV aims to make it into the first large scale producer of electric vans in the UK. "We are almost ready to go, but we need the government to do its bit," added Mr Eberhardson. "I am confident they understand the potential to secure this exciting green technology in BritainÔÇöand the need to move very quickly."   Elsewhere in the motor industry, staff at Jaguar Land Rover are to be balloted to ask them whether they will accept a pay freeze and four-day week to avoid compulsory redundancies.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *