LDV a recently bankrupt British van maker may soon be purchased by SAIC according to American automotive reports that have been echoed in the Chinese automotive press.
If SAIC are succesful in their purchasing of LDV, SAIC will gain access to the LDV dealership network. LDV are also in the process of developing an electric Maxus van, however this is still one step from being a fully production ready vehicle.
SAIC have yet to deny the rumours, and were quoted as saying “Previously we dont have any news regarding LDV that we can issue, we also do not want to comment any further on this issue”
Previously LDV was part of the Russian GAZ group, and has around 800 employees. LDV were denied government aid of 40 million pounds, which has lead to the bankruptcy. A Malaysian company are reportedly interested in purchasing LDV, but rumours of a SAIC takeover are persisting.
If SAIC are were to take over LDV, it would be expected that LDV would be moved into the Longbridge factory, which is 8 miles from LDV’s current location.
Shares in Shanghai Automotive Industry Corporation (SAIC) were suspended today amid plans which will see a major restructuring program at SAIC.
SAIC shares fell 0.04% to 25.3rmb and trading will start again after the announcement has been made. SAIC currently has joint ventures with China’s biggest car manufacturers GM, and VW.
The Chinese media are currently reporting that the reason for the temporary suspension of trading is due to SAIC wishing to reorganise its own international assets, which is likely to include the addition of British van maker, LDV.
SAIC are also planning to put the MG6 into production in the UK for the EU market towards the end of 2010, and could be ready to issue more shares to garner investment money to further their plans for the factory.
Another possibility that is being widely reported is that SAIC plan to alter their JV agreements, possibly either buying or selling more shares in one of their joint venture partners.
SAIC chairman, Mr. Chen Hong, has previously mentioned his strong interest in taking over LDV, and producing the van range in China whilst having the UK Longbridge factory assemble CKD kits of the vans alongside the soon to be produced MG6.