Struggling UK based van maker LDV is offering vehicles to creditors to offset its debts, as hopes that the Government will support a buy-out of the company fade. The company requested a £5 million loan from the UK Government and is now reported to be offering vehicles to dealerships and a few other creditors as part-payment of the money it owes them.

LDV is facing a bill of almost £1 million for national insurance contributions for its 850 employees as it tries to secure life-saving loans from the Government. Parent company Gaz is no longer prepared to pump money into the company. LDV has been in talks with the UK Government for weeks in a bid to secure funding that it would see the company bought by its existing management and turned into a maker of electric vans.

UK Government to launch £2,000 'scrappage' scheme in April The UK Government is preparing to launch a £2,000 'scrappage' scheme next month in a bid to kick-start UK car sales.

It is understood that talks on the launch of a 'scrappage' scheme, which has been promoted by the motor industry, are at an advanced stage. Under the plan, owners of cars and vans more than nine years old would be entitled to a £2,000 discount on the purchase of any new or one-year-old car or van bought at a dealership. Owners of the old vehicles would have to deliver them to one of a number of car recycling plants and receive a certificate of 'scrapping'. They would then present this to a dealer and receive the Government-funded £2,000 discount.

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