LDV – Should It Be Saved?

 

LDV Maxus Luton Van

Although I am sympathetic to the plight of LDV’s 900+ workers and would not wish to see another UK manufacturing business* close, I’m not sure whether LDV really deserves to survive.

The problem is that while LDV has sold quite a few of its Maxus vans, it hasn’t made any money – in fact it has lost money for the last four years.

On top of that, LDV has gone bust numerous times before – hardly an inspiring vote of confidence in its management, engineering ability or product design and marketing.

Finally, from a driver’s point of view, I haven’t heard anything good about the LDV Maxus. Certainly, it is a functional van and can be used to do a job – but by all accounts its durability and general quality is poorer than its main competitors, some of which are also built in the UK (think Ford Transit in Southampton and Vauxhall Vivaro in Luton).

Given all of this, it’s not surprising that LDV’s management is planning to change the business’s direction to focus on the production of a green, electric van. The only problem with this is that as with all other areas of van production, Ford’s Transit is there ahead of them.

All-electric Transit and Transit Connect vans are already available from Smith Electric Vehicles – a British-owned and genuinely profitable company that’s been around for years. From next year, Ford will be selling electric Transit Connect’s under the Ford badge, too, in partnership with SEV.

As if that wasn’t enough competition, Renault is also working hard on electric vehicles through its partnership with Nissan, who in turn have a partnership with NEC, one of the world’s leading battery producers.

Does LDV have any of these advantages? No. Does it have a war chest of money to invest in developing this technology? No. It wants to borrow it from us, the taxpayers. Having failed to make a profit with a simple, conventional vehicle in a time of easy credit, it thinks it can make a profit with a difficult, unconventional vehicle that depends on new, sometimes unproven technology.

I’d rather not subsidise that, thanks.

Note: In an almost tragically pathetic gesture, a demonstration was arranged this week at LDV’s Washwood Heath, Birmingham site to protest at the lack of government support for the company. Just eight people turned up, as reported by the BBC.

*Pedant’s note: LDV’s factory is located in the UK even if it’s owned by the Russian GAZ Group.

1 thought on “LDV – Should It Be Saved?

  1. Pingback: Save £2,000 On A New Merc Van & LDV Latest - UK Van & Van Hire News

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