UK car plant at risk of closure LDV?

#81
Argee2007 said:
Landrover are in trouble, Mini are in trouble and LDV are in trouble, . . .
To begin with, Mini, and Land-Rover/Jaguar, are no more “in trouble” than any other automobile manufacturers, and a damn sight better off than most.

The three companies you mention, are coincidentally, probably, the best placed of any in the world to withstand these “temporary” economic difficulties.

All three are owned by wealthy individuals/families - who do not have to “pander/answer to” shareholders meetings.

LDV (through GAZ - Gorky Automobile Zavod) = Oleg Deripaska.
Land-Rover/Jaguar = Ratan Tata.
Mini (through BMW) = Quandt family.

Wealthy individuals/families can take the long-term view, and have the ability to forgo share dividends for as long as it takes - without fear of being sacked/voted off the board of directors, etc..

From 1990 to 1996, I was in Nizhniy Novgorod (previously the closed city of Gorky), working with GAZ - then controlled by Pugin. Pugin, had been the Soviet Minister for the Automobile industry. (PuGin. Not PuTin !). During that period, I also visited LDV.

I did succeed in brokering a joint venture deal between GAZ and Volvo - for Volvo to transfer to Nizny Novgorod, the assembly (and eventually manufacture) of the 740/760 series. I am still very cynical as to why that deal did not develop.

I can only advise extreme caution for anyone contemplating doing “business” with Russians !!
 
#82
If you cant sell your products something is up...

Why should the goverment invest any money in a failing company, simple answer bin it.

It's not just LDV but it is a very good example, LDV aint worked since the 60's, sorry LDV games over.
 
#83
Argee2007 said:
whitecity said:
Argee2007 said:
Yeah, but if it's successful it guarantees the company for years to come, it also puts them ahead of the competitors, it might not sound great to start with, but what's the point in shoring up a company just now when two years down the line the same thing happens again?
But isn't that EXACTLY what you are proposing?
No, i was proposing putting money in and allowing them to create for the future, not to shore it up for the next couple of years then bugger off, it's a case of allowing them to create new designs, production lines, etc and allow them the time to do this, the car industry is faltering all over the world, any company that has the ability to survive the next couple of years and bring in new innovations and designs may well lead the way for the next decade.
You are advocating protectionism, which according to Cyclops is the evil of all evils.

Moreover, you are encouraging complacency in a workforce for which the UK worker has a very long and poor reputation.

Your model has been tried, and failed. The UK government tried complete nationalisation, then they subsidised BAe to have a go, then BMW and then a venture capitalist. There is no evidence it would be any more successful this time round.

Read the Select Committee reports on the car manufacturing industry. It's not pleasant reading. The globalisation model is failing the UK, but Cyclops believes it is the holy grail.
 
#84
RCT(V) said:
From 1990 to 1996, I was in Nizhniy Novgorod (previously the closed city of Gorky), working with GAZ - then controlled by Pugin. Pugin, had been the Soviet Minister for the Automobile industry. (PuGin. Not PuTin !). During that period, I also visited LDV.

I did succeed in brokering a joint venture deal between GAZ and Volvo - for Volvo to transfer to Nizny Novgorod, the assembly (and eventually manufacture) of the 740/760 series. I am still very cynical as to why that deal did not develop.

I can only advise extreme caution for anyone contemplating doing “business” with Russians !!
Hahahahahaha....... welcome to the club. I worked on a JV project between another international motor group and another big Russian car manufacturer..... That all went tits up as well.
 
#85
Ha ha we're pis$ing in the wind. While we were worrying about a piddling 25 million bail out for a car company the goons in charge were throwing another 500 billion at the banks, fcuk me you couldn't make this up. That takes the debt for servicing the banks to 1 trillion +, the entire GDP for one year!!! On top of the 600 billion already owed.

The pound is about to go through the floor, this spending is simply not possible, the money doesn't exist.

1979 was a fcuking wintersports gettaway comparred to what this is leading to.
 
#86
4(T) said:
RCT(V) said:
From 1990 to 1996, I was in Nizhniy Novgorod (previously the closed city of Gorky), working with GAZ - then controlled by Pugin. Pugin, had been the Soviet Minister for the Automobile industry. (PuGin. Not PuTin !). During that period, I also visited LDV . . . .

I can only advise extreme caution for anyone contemplating doing “business” with Russians !!
Hahahahahaha....... welcome to the club. I worked on a JV project between another international motor group and another big Russian car manufacturer..... That all went tits up as well.
Ah! A club !! Do we have meetings, are they monthly, regional ?! Is there a club tie ? Is therapy available ?!
 
#87
What would a wodge of British Gov't cash actually provide apart from some time which, according to some cynics, Oleg Deripaska might use to arrange a hasty exit from the business

Even if it did keep the company afloat, net gain to the UK might be very little:

GAZ plans to start Russian Maxus production in 2009

5th November 2007

LDV’s Russian parent GAZ said on Sunday it intends to launch the production of LDV Maxus commercial vehicles in Russia in 2009. Its plant in Nizhny Novgorod is expected to produce 50,000 Maxus units a year. The Novosti news agency report made no mention of the future of UK Maxus production in Birmingham.

GAZ acquired LDV in July 2006 from Sun Capital, a U.S. private equity fund, after the latter had put LDV into administration. LDV’s Birmingham output of the Maxus range is currently about 15,000 units a year. , formerly Leyland DAF Vans Limited, produces about 15,000 vehicles a year.


http://www.autoindustry.co.uk/news/05-11-07_4
 

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