SAIC to Take Over Van-Maker LDV

SAIC is continuously looking at ways to expand its presence in China and taking over overseas manufacturer seems to be the easiest way to do that. The Chinese carmaker is reportedly looking at ways to purchase the British light commercial vehicle manufacturer LDV, according to a report by gasgoo.com.

The British company stepped into receivership in June 2009 and is currently working on several projects, including an electric version of the Maxus. However, the aforementioned source says the company would need more money to start mass production of such a vehicle.

In case the deal goes through, LDV would move production of the Maxus in China, a supplier working with the company was quoted as saying by the aforementioned source. Transferring production to Shanghai, in the same plant with the Roewe, would lead to a significant job cut in the United Kingdom, the source said.

Just as expected, SAIC hasn't commented on the reports but said that "currently we have no news to release on the LDV deal, and no comment to make."

LDV Group, which was initially owned by Russian automaker GAZ Group, is seeking money from the UK government to stay in business and cope with the crisis. The British government however recently rejected a 40 million pounds request.

LDV, who is based in he Ward End area of Birmingham, has a workforce of approximately 2,000 employees. The Maxus, which is powered by direct injection, common rail engines provided by VM Motori, might be manufactured at the GAZ Nizhny Novgorod plant in Russia but negotiations are still under way.